Equity release increases happiness, new report finds

Would a £62,000 lump sum make YOU happier?

Written in line with our editorial policy.

A recent report by SunLife reveals that 72% of equity release customers experienced increased happiness, with many raising money for home improvements, holidays and long-term financial security.

SunLife’s Life Well Spent 2024 report has found that over-55s using equity release to boost their finances say it has increased their happiness levels. 

Equity release allows homeowners to access the tax-free cash from their home without the need to sell or make any mandatory monthly repayments. Instead, the money and accrued interest are paid back through the sale of your home when you pass away or move into long-term care.

Here’s a breakdown of how people in SunLife’s survey say they would use money from equity release:

• 46% – holidays or travel
• 43%  – home improvements
• 32% – supplement their income
• 22%  – early retirement
• 15% – pay off mortgage or other debts
• 10% – family financial support
• 10% – family gifts

Financial stability and happiness

The report highlights that the happiest individuals over 50 tend to have smaller mortgages, have household incomes exceeding £40,000, go on holidays more often and are more likely to give a cash gift to loved ones. 

Equity release can help with all of these. For example, it can help homeowners pay off an outstanding mortgage. That includes those reaching the end of an interest-only mortgage term without the means to repay the remaining balance. 

Many in this situation face difficult choices—either selling their much-loved home and renting in retirement or downsizing to a smaller property that may not suit their needs. By using equity release to clear their mortgage, homeowners can stay in the home they love. It can give them the financial breathing space to also enjoy a more comfortable day-to-day lifestyle.

Looking out for loved ones

Family is what brings the most joy to many people over 50, so it’s only natural that many worry about their children and grandchildren’s financial future. In fact, 23% of over-50s in SunLife’s survey said they are concerned about their family’s financial well-being, a figure that’s even higher among women. 

According to SunLife, the average family financial support from equity release customers to loved ones for expenses such as house deposits in 2024 was £16,444. 

And, when it comes to the correlation between equity release spending and happiness, it seems that gifting money to loved ones tops the list. A full 100% of those who gifted some of their equity release funds as an early inheritance said it made them feel significantly happier. 

This emotional reward even outshines the happiness boost of early retirement, where 71% of those who used equity release to retire early said it improved their happiness levels.

Speak to a specialist

Are you aged 55+ and in need of a cash boost? Understanding the costs, benefits and drawbacks and the long-term impact of a plan is crucial before making such a significant financial decision. 

The good news is, that’s where we can help. Consulting with one of our selected equity release advisers will ensure you get personalised quotes and information to help you decide if a plan might align with your financial goals and needs.

Call our friendly team free on 0808 178 3055 or request a call back at a time convenient to you.

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn