During the third quarter of 2017, almost one in eight equity release customers used the money released from their property to pay for a holiday, according to Retirement Advantage.
The firm believes the findings are “positive evidence” that people are using assets such as property wealth to live a “fulfilling and enjoyable retirement”, as well as using the money released to pay off debts or clear a mortgage.
Data from Retirement Advantage’s customers show that in Q3 this year, 12% said they used equity release to fund going on holiday. In addition, 9% said they used property wealth to buy a car and 5% used it to fund a new property. The most common use cited was home and garden improvements, with 25% of customers drawing on their property value for this reason.
Alice Watson, head of marketing at Retirement Advantage Equity Release, said: “People looking for financial stability and certainty in retirement don’t just want to make ends meet. They also want to live a lifestyle that provides them with happiness and fulfilment. I’m encouraged that customers are thinking proactively about their assets and using them to boost their retirement lifestyle.
“For customers looking to maintain their lifestyle in retirement, using property wealth makes sense. With equity release you remain in control of your property, and there are different product options depending on how – or whether – you want to start paying the loan back.
“As equity release continues to grow in popularity and product innovation widens the scope of what’s available, the breadth of uses of property wealth to support retirement will no doubt increase further. The next step is for more financial advisers to become equity release qualified, so they can talk to their customers about the importance of a holistic approach to retirement planning, which considers property alongside other assets.”