Homeowners aged between 55 and 95 might be considering downsizing in order to raise some money and ensure they have enough cash to cover the cost of their bills in retirement.
But for those who do not want to move out of their home and undergo the stressful process of a house sale and a relocation to another property, equity release plans may be a good idea.
Vanessa Owen of LV= told the Independent these financial products should be a "prime consideration" for those nearing the time they are going to give up work.
"Planning ahead and discussing every available option is key to securing a comfortable retirement," she advised those looking into equity release plans.
Interest rates
With interest rates remaining at a record low of 0.5 per cent in the UK and looking as if they are going to stay this way for some time in the future, those relying on savings are likely to find their money is being eroded over time due to the higher rate of inflation.
Recent months have seen the headline rate push above five per cent, with the rising cost of bills for gas and electricity one of the major drivers of this.
Ms Owen said: "People can look at downsizing to release the equity in your property, or this can also be done through an equity release plan if you want to remain in your current home."
Property ladder
She also pointed out downsizing may only be an option for those who are high enough up the property ladder to be able to move to a smaller property and still have enough money left over from the new purchase to fund their retirement years.
It was pointed out many individuals do not want to consider leaving their family home, which will hold memories from throughout their lives, so equity release schemes could be a good choice.
Jane Wilson, a manager in the wealth management department at Dickinson Dees, recently noted now is a particularly daunting time to be embarking on retirement planning due to the fragile state of the economy in the UK at the present time.
Speaking to Newcastle-based newspaper the Journal, she explained the first step for those coming up to retirement has to be deciding how much money they are going to need.
Using the equity release calculator from Key Retirement Solutions may prove to be a good move for those who want to know more about the financial product.