Equity release can be used to help people sustain a good quality of life when in retirement, it has been claimed.

Clive Balchin, director at Lancashire-based insurance provider James Trickett & Son, explained the solution is often used because individuals do not want to miss out on certain aspects of their lifestyle they have become used to.

Some want to boost their income in later life, he noted, while others lend cash to their children to support their business venues.

"One of my clients used it to convert her basement to a studio for her granddaughter," Mr Balchin continued.

He said it is rare for Brits to turn to various equity release products due to financial hardship and many give money to family members because they want to see it being put to good use.

It seems more pensioners are considering the option, as recent figures from Safe Home Income Plans showed there was a ten per cent rise in the number of people taking out such plans in the third quarter of 2011.