The research asked 1,000 respondents to share the reasons why they took out an equity release loan.
It found that 41 per cent used the loan for home improvements, 24 per cent consolidated unsecured debts, 28 per cent went on holiday and 18 per cent put the money towards living expenses.
Property or pension?
According to the research, 52 per cent UK homeowners believed their pension pot is worth a lot less than their house or property.
However, 52 per cent would rely on their pension rather than their home or property to fund their retirement.
A further 28 per cent expected to rely on a combination of property and pension.
“People choose to use lifetime mortgages for lots of different reasons, but the fact that daily living expenses is one of the most popular options shows how much people are beginning to see their property as an extra source of income,” said Alice Watson, head of marketing and communications at Canada Life Home Finance.
“Traditionally, people have relied heavily on their private pension wealth, alongside their state pension, to be their main source of income in retirement.
“But the amounts that people have in their pension pots are unlikely to provide the style of retirement people want, and although people recognise that there’s more wealth to be found in their homes and properties, they’re not grasping that opportunity,” Watson said.
“People should work with advisers to understand the advantages that using their properties to fund their retirement can bring, not just in terms of monetary benefits but also for inheritance planning,” she added.