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New data has shown that more than £4bn of retirement spending is set to be funded by equity release this year, this figure is then set to more than double by the end of the decade. Equity release now funds £1 in every £90 spent domestically by retired people, this research has been conducted by Legal & General and the Centre for Economics and Business Research.

Equity release allows homeowners to gain access to capital tied up in their home. The share of property wealth held by the over 65’s has risen from 28% to 37%.

The majority of this money (£1.9bn) is spent on larger purchases, such as home improvements, furniture or new car, while £1,3bn is spent on food, clothes, transport and entertainment.

The remaining £480m was found to be spent on international holidays and financial planning.

Craig Brown, chief executive of L&G said “This shift towards using equity release reflects the boom in property values, which has made our homes such a important asset, but it also demonstrates how far the equity release market has come through the introduction of product innovations and how it has become a more suitable solution for a wider range of people. It has now moved from a specialist product to a mainstream option.”