Around 19% of those using equity release did so for intergenerational gifting purposes, to give money to family members.
According to analysis of Canada Life’s full-year 2025 data, this is a 3% rise on the prior year and the highest figure recorded in a decade of customer data.
Canada Life said the upward trend shows the “increasing significance of intergenerational support”, as older homeowners are looking to assist children and grandchildren with finances such as house deposits and education fees.
Home adaptations or improvements came out as the leading reason for equity release in 2025, with 43% of applications citing this as the primary reason for withdrawing property wealth. This is 10% up on last year.
Using equity release to clear an existing mortgage dropped from 36% in 2024 to 27% in 2025.
Establishing an emergency fund has grown from 8% in 2024 to around 21% in 2025. The growth shows “heightened financial caution, with more customers prioritising a safety net against unexpected expenses, possibly in response to economic uncertainty or personal health concerns”.
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Sadna Zaman, home finance proposition manager at Canada Life, 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. At the same time, more customers are incorporating equity release into their estate planning strategies, using property wealth to pass assets to the next generation in a timely and tax-efficient way. This is enabling families to support loved ones with major milestones, such as home purchases or education, while also potentially reducing inheritance tax liabilities.
“The range of uses for equity release underscores the importance of tailored, expert advice. 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.”
