Almost one in five (19 per cent) people who used equity release did so to gift money to family members, research from Canada Life has revealed.
The research found this was a 3 per cent increase on the previous year, and the highest figure recorded in a decade of Canada Life’s customer data.
The provider suggested the trend underscores the “increasing significance” of intergenerational support, as older homeowners look to assist children and grandchildren with financial milestones such as house deposits and education fees.
Home adaptations or improvements emerged as the leading reason for using equity release in 2025, with 43 per cent of applicants citing this when applying.
This represents a 10 per cent uplift on the previous year.
Canada Life home finance proposition manager, Sadna Zaman, said: “It’s clear from Canada Life’s data that equity release is increasingly supporting customers with a broader range of retirement ambitions and family needs.
“No longer regarded as a last resort, equity release is supporting customers to enhance their lifestyle and homes, build financial resilience, and support estate planning.
“The majority of customers citing home improvements as their primary reason for releasing equity highlights a growing desire to remain in and invest in their own homes.”
While clearing an existing mortgage remained a key motivation, Canada Life reported that 2025 marked the first year where it was no longer the leading reason for taking out equity release, dropping from 36 per cent in 2024 to 27 per cent in 2025.
The data also highlighted a “marked” increase in the number of customers establishing an emergency fund, increasing from 8 per cent in 2024 to 21 per cent in 2025.
According to the provider, this rise points to heightened financial caution, with more customers prioritising a safety net against unexpected expenses, possibly in response to economic uncertainty or personal health concerns.
“The range of uses for equity release underscores the importance of tailored, expert advice,” Zaman added.
“Equity release may not be the solution for everyone, but advisers play a vital role in helping customers make informed, confident decisions about their financial futures in later life.”
tom.dunstan@ft.com
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