Scots bring home a boost for retirement finances

release customer in Scotland was aged 71.

The majority of homeowners released property wealth as a way to pay for home improvements, with 49 per cent using some or all of the money to in invest in their property. Around 34 per cent of pensioners used the money to clear debts on credit cards and loans, including mortgages, while a further 16 per cent used their cash to pay for holidays.

Dean Mirfin, technical director at Key Retirement, believes the trend for releasing equity indicates that homeowners regard their property as a way to supplement their finances in later life.

He explained: “Property wealth is making a huge contribution to retirement planning and that is demonstrated by the wide range of issues Scottish pensioners can tackle.

“It is interesting that retired Scots are more likely to help out family than spend money on a holiday but that is partly because they are able to release more than £ 55,000 and their money is able to go further.

“The biggest use of property wealth is to pay for home and garden improvements and it remains the case that many Scottish pensioners need to clear debts.”

He added: “Equity release is a real alternative for pensioners who are seeing traditional retirement income solutions squeezed by historically low interest rates.”