Isas are more appropriate than stakeholder pensions for low to medium earners, says a senior economist with the ABI.
Economist Chris Curry makes his claim in the trade body's quarterly insurance trends survey.
Curry writes about the pensioner credit and the effects it will have on the insurance industry.
He says there are few tax differences between the two savings vehicles and, given the flexibility of Isas, they may be better for much of stakeholder's target market.
But Curry concedes that a stakeholder pension is the best bet if an employer is making contributions alongside the employee.
The paper also claims IFAs will avoid recommending pension products to the target stakeholder market because of fears that they will be accused of misselling later on.
The paper says this is because, under the credit scheme, it is unclear whether the small amount of low to medium earners who can afford to save will surpass the cut-off point for state benefits.