Home improvement, debt repayment and travel top the list of the most common equity release spends, according to new research from SunLife.
However, over 50s are twice as likely to think they’d spend equity release on early retirement, compared to the number that actually do.
The research shows that overall, around one in 20 people eligible to take out equity release have done so, while a further one in eight (15%) would consider it.
Those who have not taken out equity release, but would consider it, say they would choose to release £88,143, and that their top priorities would be holidays (53%), home improvements (47%) and early retirement (27%).
But when it comes to what those who have released equity actually do, the priorities are somewhat different. Top is actually home improvements – 39% of those who have taken out equity release spent it on home improvements, at an average cost of £11,100.
Next is mortgage and debt repayment – a third have done this, spending £18,441 on average – while a third (31%) spent the money on holidays or travel (£6,500 on average). And while more than one in four think they’d use the money to fund an early retirement, just one in eight (13%) actually have.
According to SunLife’s research, one in eight over 50s who have released equity from their own homes did so specifically to financially support their loved ones, while a further one in ten would consider it.
The study found that 12% of over 50s who have released equity did so to provide financial support to family – giving them £12,525 on average – while 13% released equity in order to give cash gifts to family – £4,043 on average.
Of those who have not released equity – but would consider it – 10% say they would use the money to financially support family – planning to give £38,808 on average, while 15% would use the money to give a gift – of £20,600 on average.
