Cash point

Nearly 100 retired homeowners a day are cashing in on their homes with equity release plans.

A third needed cash to pay off debt, such as credit cards with an average £11,395 outstanding, or loans of an average £14,881.

A quarter used money to clear mortgage debt, owing an average £85,500, reveals research from over-55s finance specialist Key Retirement.

Equity release can be a way of raising cash to boost retirement incomes, but it isn’t the right move for everyone. It will mean the value of your estate is reduced and could affect your entitlement to benefits.

It also limits your financial options in later life.

Equity release plans offer tax-free lump sums, typically around a third of the value of a property. You can continue to live in your home for as long as you want and there can be options to leave some inheritance.