Savers can retire five years earlier by investing the cash saved by working from home as new figured showed the average Briton tucked away £241 a month by cutting commuting.

One in six of us put the savings into a pension, according to Nutmeg, a wealth firm, squirrelling an average of £128. However, if savers continued to do this for 30 years it would increase pension pot by a third and allow them to retire five years earlier.

If a saver wanted an income of £20,000 in retirement, they would have to save £410 per month for 30 years. Adding the work from home savings would reduce this to 25 years, assuming a return of 6.5pc, with fees of 1pc.

The saver could also increase their annual income to £26,415 by sticking with the original 30 year timeline, Nutmeg said.