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People approaching retirement may want to consider taking out a loan to maintain a comfortable lifestyle after research has revealed that nearly half of over-55s are concerned they will have to live frugally.

According to Birmingham Midshires, 21 per cent of over-55s questioned claim they will take on a part-time job to supplement their retirement income.

Furthermore, 33 per cent say that they will live on a minimum budget, although both unfavourable options could be replaced by a secured loan, which may boost the retirement coffers of a household.

Tim Hague, director of savings and investments at Birmingham Midshires, says: "When people should be winding down to their retirement and enjoying their financial nest egg, the over-55s are more concerned than ever about whether they can afford to live on what they have saved."

Indeed, Alliance & Leicester found that 42 per cent of the over-50s questioned claim that they plan to make sacrifices, or have already done so, in order to boost their retirement funding.

But secured loans could be one way to pay for any large ventures people in retirement may wish to take, be it a new car, a luxury cruise or much-needed home improvements.