Many retail investors are overpaying on their UK tracker funds, with such overpayments equating to around £45 million each year, research has shown.

Fidelity International’s analysis revealed that many investors turn to these funds as they are perceived as simple and low-cost, although in some instances this is not the case.

Gary Shaughnessy, managing director of DC and retail business at Fidelity International, said: "More should be done for retail investors who may not qualify for some of these products coming to market, due to their six figure minimum investment levels, and who are still paying too high a price year in year out for their existing funds."

Three-quarters of UK tracker providers are currently imposing costs of at least 0.5 per cent, the study showed.

Findings from the NS&I show Britons have saved an average of £86.35 each month over the last year, ending on a high of £90.12 during the winter months ending in February.

Some 40 per cent of people said they thought they would be less likely to save in the next three months and a similar figure said they were less likely to save in the coming year.