Almost a third of Britons plan to cash in on the value of their home to help see them through retirement.

About 16 per cent of 2,000 people questioned said they planned to release equity from their property to supplement their income when they stopped working, while 14 per cent plan to move to a smaller house, according to research by Birmingham Midshires.

The findings come the day after a report warned people thinking of using their home as their pension fund risked facing financial hardship in later life if house prices fell or they faced large maintenance bills.

Overall, 65 per cent of people are planning to take some action to boost their pension after seeing their savings hit in the past two years, with some planning to work for longer while others are looking at leaving the country.

About 13 per cent of people plan to work beyond the age of 65 in order to save more money into their pension fund and 12 per cent of people plan to move abroad when they retire because they think their money will go further.

One in five people also either hope to move jobs or get a pay rise before they retire in order to boost their pension.

But just seven per cent of people said they were prepared to cut back on luxuries during retirement and only four per cent said they would live on a minimal budget to take account of any shortfall in their income.

People rejected relying on their children for help, with only two per cent planning to move in with their offspring and one in 50 saying they would be tempted to borrow money from their children.

Richard Brown, marketing product manager for Birmingham Midshires, said: "With property prices rising in the past few years, people are clearly looking to the capital in their home to provide extra income for retirement.

"But people should not rely on property alone. A fall in house prices could be devastating for those without other savings to fall back on."

In research released yesterday, almost a quarter of people are turning to debt just to help them make ends meet.

About 24 per cent admitted they used loans and credit cards to pay their household bills or meet day-to-day living costs, according to accountancy firm KPMG.

More than half of the 2,304 people questioned owed up to £10,000, excluding their mortgage, while 16 per cent had debts of between £10,00 and £40,000.

Unsurprisingly, 15 per cent said their debts were spiralling out of control or keeping them awake at night.

Thursday August 28, 2003