Retirement planning traditionally revolves around calculating your levels of savings / pensions and how much income you will require when you stop work.

However, recently a doctor told me he was looking at his finances from a different angle. His point was that it was very expensive for him to keep working and he cited four areas of significant costs which would be expunged when he retired.

The first area was unavoidable work costs such as travel, business wear and professional subscriptions. Although some of these are tax deductible, most are not and ran into many thousands of pounds each year.

The second area he considered was ‘efficiency’, or more accurately, the lack of it. An example would include not having the time or energy to shop around for the cheapest energy supplier or a new set of tyres for the car. The savings here are likely to be measured in hundreds rather than in thousands of pounds but they are still significant.

The third area was the employment of other people to undertake jobs which given the time you could do yourself and hopefully would enjoy doing. Examples of this would include DIY and gardening which would come with either health warnings or health benefits depending on whether you are rewiring the house or digging the vegetable patch.

Finally, being a busy, successful professional, you are prone to ‘reward’ yourself for working too hard with treats such as expensive restaurants or luxurious holidays. While not ‘off the menu’ when retired, my experience is that people become ‘cheaper to run’ and some luxury items become less important.

Therefore, he was convinced that he could no longer afford to work full-time and would work towards complete retirement!