Retired homeowners released £3.6 billion in new property wealth last year as new data from Key Retirement Solutions revealed.
Equity from people’s homes paid out nearly £10 million a day in 2018 with customers releasing an average £76,500 to improve their standard of living in retirement. The statistics indicate that the number of customers using money to help families rose to 27% from 24% the previous year highlighting how property wealth is increasingly supporting a wider range of financial needs for retired people. Money gifted to family and friends is typically being used to clear debts, pay for significant life events such as weddings or to fund house deposits. The figures show other major uses of gifts are to pay for large family holidays, fund university fees or buy cars.
The most popular use remains funding home and garden improvements with 64% re-investing some or all the money in their houses – often to “age-proof” the property. Around one in three (33%) paid for holidays and 31% used some or all the cash to clear credit cards or loans while 22% paid off existing mortgages.
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