The research, by Norwich Union, revealed that 77 per cent splash out on home improvements, 34 per cent on holidays and 1 per cent choose to invest in property abroad.
The research also shows that customers dont rush into taking out a lifetime mortgage.
More than two thirds of lifetime mortgage customers wait between three and 12 months between first thinking of taking out a lifetime mortgage and approaching either Norwich Union or a financial adviser.
Daren Carter, director of sales and marketing at Norwich Union Personal Finance, said: These figures show that the majority of equity release money is needed for practical purposes.
Its already helping thousands of people to make their retirement more comfortable, either by funding home improvements, filling any gaps in retirement income and making it possible for them to go on holiday.
