According to a poll of 2,000 people over the age of 50 carried out by Sunlife, almost two fifths of people who used equity release put the money towards renovating their home.
A third used the money to pay off debts and their mortgage and 31 per cent travelled.
Of those who made home improvements, the average cost was £11,100, people who repaid debts spent £18,441 and those who used it to holiday spent £6,500 on average.
Other uses for equity release were to support family, as cited by an eighth of respondents who gave £12,525 on average, and 13 per cent used the money as a cash gift of £4,043 on average.
Overall, the average amount released was £50,514.
Equity release potential
The firm also polled people who had not used equity release and found that of those who would consider it, a tenth would use the money to support family and 15 per cent would gift it.
More than half, 53 per cent, said they would use it to travel or go on holiday, and 47 per cent would put it towards home improvements. More than a quarter would pay off their mortgage or other debts.
Overall, the study found that one in 20 people who are eligible to take out equity release had done so, while 15 per cent would consider it.
Mark Screeton, CEO at SunLife, said: “It’s great to see that the vast majority of those who have released equity feel happier in their lives as a result.
“Retirement should be a time to relax and spend your time however you choose, and for some people equity release can be a great way to unlock more opportunities in later life.”
