Research from Prudential shows that almost one in four pensioners does not have enough money to pay for their retirement, and one in five pensioners who own their own home thinks they will have to move to make up the difference.
Along with people who have to sell their homes, one out of every six retired people would think about taking in a lodger.
But now, equity release or home reversion plans let pensioners get cash advances based on the value of their homes.
Homeowners can sell all or part of their home through home reversion schemes and get a lump sum, an income, or both.
The amount owed can grow quickly because interest is added to both the original loan amount and the interest that is added each year.
Interest rates on equity release loans tend to be about 7% higher than those on regular mortgages.
In a reverse mortgage, interest is added to the principal and the loan is paid back when the owner dies, not during the borrower's lifetime.
But people who use the programme won't get anything close to what their house is worth on the market. Instead, lenders usually pay between 40 and 60% of the current value of the property.
The Council of Mortgage Lenders (CML) says that at first, almost 12,000 plans were sold.
In total, pensioners have now borrowed a total of GBP2.3 billion through equity release schemes.
But the CML thinks that the market for equity release could reach GBP100bn in the future.
A spokeswoman for Age Concern England said, "Many pensioners are tempted by equity release because they have a lot of assets because house prices are going up, but they don't have much cash because their retirement income is low."
But people shouldn't rush into these plans. It's important to do research on the market first. One of the main problems with equity release plans is that they don't always work out well when the borrowers' lives change.
For instance, a borrower who wants to move to sheltered housing or a cheaper home may have to pay back some of the loan right away.
Also, people who take out roll-up loans may not have enough cash to buy the new property they want.
If the borrower pays off the loan early, they may also have to pay a big fee.
Also, keep in mind that the Financial Supervisory Authority (FSA) rules will cover mortgage-based products, but they won't cover home reversion schemes.
But the Treasury has said it wants to talk to people about how to regulate equity release plans, which are often used to get money for retirement.
The Treasury also said that the review could give the FSA the authority to watch over the sector and make sure that older people don't lose out.
But you can make money from your property in other ways besides selling it.
One out of ten retirees who own their own home would think about equity release to add to their retirement income. There are two main ways to get money out of your home's equity: home reversion plans and lifetime mortgages.
"There are different ways you can use your property to make money. People who don't want to leave their home when they retire may want to get a lifetime mortgage "Mr. Crossley of Prudential said this.
"More people are thinking about this option now, in part because there are better, more flexible products on the market."
Planning is the only way to make sure you have enough money when you retire. The earlier you start, the better, but there are many things you can do throughout your life to make sure you have enough money. Talking to a financial adviser about your pension options is a good idea, but don't get stuck.
