There are many ways to prepare for retirement, be it by investing in shares, a private pension fund or other such scheme. With annuity rates from some schemes decreasing in recent months, it pays to diversify and think outside the box a little.

One thing that could be considered is releasing the equity from the property that you are living in. To some people this may at first seem shocking, as they view their house as a home and not simply an investment.

However, it is quite likely that your home is the most expensive thing that you own. It is also likely, that if you had kids and they have grown up and left the nest, you don't really need one quite so big anymore. It may also be the case that you might prefer a bungalow than a two floor house as you get older.

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elling the house would release equity. Of course, you would still need somewhere to live, and this is where you would need to think hard. Some people decide that they will buy a smaller house, and the difference between the two is money that they will live on for a while. Others decide that they will rent a small house, or even move in with their kids!

There is no right or wrong answer, as everyone's circumstances are different. It is something to consider though, and it may be worth seeking independent financial advice before taking the plunge.