Giving pension advice to employees in light of the pension freedoms coming into force in April is a very dangerous place, according to energy firm Calor Gas.
Adam Thompson, finance director at Calor Gas, said his role was "making people aware without telling them what to do", but he warned the firm could not give people financial advice.
Speaking at an event organised by Barnett Waddingham, Thompson said: "Advising people is a very, very dangerous place. Our role is making people aware without telling them what to do."
Thompson said his firm's defined contribution (DC) scheme is a "really important tool" towards building relationships with staff. Calor Gas' defined benefit (DB) scheme closed in 2002 but there are still 230 members in it.
"DB gets so much more focus than DC. Now I do care about the 230 active staff in the DB scheme but I have got another 1000 or so who are in the DC scheme," he said.
Referring to DC scheme, Thompson said: "For us it's a key way of making sure our people are rewarded, loyal and also it's the right thing for us to be doing."
Concerning the pension freedoms, he said: "It's all very much up in the air. But as a business leader, it's important to make sure people are aware of the facts as much as possible."
During a discussion on the employer perspective on pension freedoms, Roger Mattingly, director at Pan Trustees, said there were "two main drivers of human instincts: greed and fear".
"Greed, the seduction of cash will kick in," said Mattingly, "and fear, the lifestyle followed by 'Oh my god what have I done'".
Mattingly said the pension freedoms could "change the landscape of careers" as people would leave the workplace, "only to come back in 10 years time" after spending their pension savings.
He felt trustees were now expected to provide people with financial advice, adding: "Suddenly trustees have to become financial and taxation experts when it comes to decumulation and freedom choices."
Mark Futcher, head of DC at Barnett Waddingham, said with the reforms, individuals would be able to withdraw their retirement income and spend as they wish. He said: "We no longer see DC as a pensions vehicle, but as a savings vehicle".
Futcher predicted people with pension pots smaller than £30,000 were likely to withdraw their savings, but those with a pension pot higher than £30,000 were likely to leave it for investment. He said: "People need a short, medium and long-term investment strategy."
