As pressure on household finances increases, many Brits currently enjoying their retirement could have concerns about their monetary situation.

Inflation is rising in the UK and in particular, the cost of many commodities older people spend their money on - such as food and fuel - is increasing. Although there are energy-saving initiatives available, new research conducted by uSwitch.com has revealed 59 per cent of consumers think going green and making improvements to their house will cost too much money.

However, equity release could be a way of paying for these alterations, or indeed, simply used to provide extra income in later life.

David Wright, managing director at financial advisory firm Sixty Plus, described the solution as a "nest egg" many people are not aware they have. "It is a very good way of helping to fund retirement. People have had fragmented working lives and they can be asset rich, but casual income poor."

Mr Wright said equity release is an "obvious solution" for pensioners who need some extra cash but are not in a practical or financial position to downsize to a smaller home. Similarly, equity release is useful for those who value their privacy and do not want to generate funds by renting out their spare room to a lodger. It could also help individuals who are already claiming all of the benefits they are entitled to and do not have any wealthy family members who can give them a helping hand.

At the end of last month, LV= released a new report titled HIPpies that revealed 31 per cent of people over the age of 50 - or two million Brits - are thinking of supplementing their retirement income using equity release.

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