According to provider Liberty SIPP, spending £6 on lunch at Pret A Manger 16 times in a month costs £96. But if the average 25 year old put that into a pension pot instead, their retirement income would jump by £12,000 a year.

The study looked at the difference that could be made to a person’s retirement income if they chose to forego a range of common monthly luxuries and saved the money into a pension instead.

It showed that someone aged 25 spending £59.50 a month on a typical Sky Sports and Movies package would be £7,440 a year – £620 a month – better off in retirement if they switched the money to a pension.

Meanwhile, a 25-year-old who redirected their monthly £40 spend on frothy coffees at Starbucks into a pension would be £417 a month better off in retirement.

And cancelling the average £50 monthly gym membership in order to put the money into a pension will increase a typical 25-year-old’s income in retirement by £521 a month.

John Fox of Liberty SIPP said: “These figures show what a huge difference putting aside a little extra money can make to your pension.

“While no-one is suggesting we give up all treats forever, cutting out small things now – like expensive coffees, a top-of-the-range mobile phone or the odd night out on the town – can ensure our life in retirement is much more comfortable.

“No-one likes to think about getting old, but far too many of us are saving too little, too late for our retirements. People need to start saving, and saving regularly, if they are to avoid pension poverty.”

The report pointed out that the impact on retirement income is lessened the later you leave it to ramp up your pension saving.

A 10-a-day smoker who quit at age 35 in favour of pension saving would add £7701 to their annual retirement income, but if they left it until they were 45, the boost would be less than half as much, at only £3830 a year.

Cutting out a £40 monthly takeaway from the age of 25 would add £417 to your monthly income in retirement, but if you left it another 20 years to ditch the dim sum your pension would increase by only £114 a month.