The government’s proposal to cap pension fund fees at 0.75% of savings risks future litigation, the head of defined contribution at JP Morgan Asset Management warned at the National Association of Pension Funds’ conference yesterday.

Simon Chinnery said: "We are going down a deep rabbit-hole on pricing. Cheap, cheap, cheap will not do it. Thirty years down the line, some saver will say 'why am I in this position?' and the answer will come back, 'we put you in the cheapest fund'. And I can hear the thunder of the hooves of litigation coming down the track."