This is according to a survey of over 500 people who had either taken out equity release or declined to proceed with the product after making enquiries.
Almost a third (32%) of those who took out equity release said they did so because they realised they wanted more from life as they got older and needed additional money to do this, said Standard Life Home Finance, which commissioned the research.
Meanwhile 11% said their family and friends needed their support.
Others were more focused on financial planning, with 17% saying that they had always known that their pensions and savings were not enough.
A further 11% revealed that they considered their options as they realised their finances would not provide them with the standard of living they wanted.
Kay Westgarth, head of sales at Standard Life Home Finance, said: “While historically some people have been comfortable pigeon-holing equity release as a product of last resort, speaking to customers who have taken out equity release or seriously considered this option, you can clearly see that this is not always the case.
“Instead, it is frequently being used as a financial planning tool, a springboard to achieving retirement ambitions or an opportunity to support the wider family.”
The ‘Lightbulb Moment’ research considered views from 418 people who had taken out equity release and 94 who had declined to proceed after enquiring about the products.
It also found fewer than one in ten (8%) said their choices were driven by a life event which derailed their retirement plans – such as divorce, redundancy, or illness.
Of those who did not take out equity release, 17% said their need for additional money had been driven by a life event. This cohort was also more likely to say they had always known their pension and savings were not enough and be keen to support their family and friends.
What were the reasons for considering equity release?
(Source: Standard Life Home Finance)
| When did you first realise that you needed additional money to meet your needs | Took out equity release | Didn’t take out equity release |
| I wanted more from life as I got older and needed additional money to do this | 32% | 17% |
| I had always known this as my pensions and savings are not enough | 17% | 20% |
| Having spoken to family and friends, they needed my support | 11% | 15% |
| As I approached retirement, I took a look at my finances and did not have enough to enjoy the standard of living I wanted | 11% | 11% |
| A life event such as a divorce/redundancy/illness derailed my existing plans | 8% | 17% |
| I did not want to keep working and I needed additional money to allow me to stop | 5% | 8% |
I took equity release out because I needed a car and to pay off my debts.
Your firm were so helpful in achieving the release of equity on my house