Its data shows nearly one in three (30%) customers taking out equity release spend some of the cash on holidays with some using the money to help fund holiday home purchases.
The average amount released to fund holidays is nearly £7,000 while those who are buying holiday homes in the UK and abroad release an average of £58,850 with Spain still a popular destination for home ownership abroad.
Holiday spending includes once in a lifetime trips to destinations many only dream of visiting as well as UK staycations highlighting how property wealth is helping to improve lifestyles in retirement.
For some equity release is also proving essential in keeping close to loved ones. Many have children or other relatives living overseas in more expensive to reach locations such as Australia, New Zealand, Canada and the USA.
Retired homeowners in the South East, where property values are higher, are the most likely to use capital from their home to fund a holiday, followed by those living in the South West. And men are more likely to use money for holidays than women – Key’s figures show men are nearly twice as likely to use money for holidays.
Dean Mirfin, technical director at Key Retirement, said:
“With an average spend approaching £7,000 for holidays, travel is a popular choice for those unlocking cash from their homes, often alongside other uses to improve their lifestyle in retirement.
“Whether it’s jetting off to exotic climates, purchasing a holiday home or visiting relations in far-flung corners of the world, property wealth is providing the opportunity for over-55s to visit places they have previously only dreamed of. It is also enabling many to have a 2nd home in the UK or abroad, which for many would not be possible without access to the wealth tied up in their main homes.
“Property wealth is becoming a major part of retirement planning and can substantially improve quality of life. Customers using equity release are releasing an average £72,000 from their homes to meet a range of financial needs and wants in retirement."
