HOLS THAT ARE HOME-GROWN

Older generation are using their property wealth to enjoy globetrotting adventures

Baby boomers are using their home to travel to exotic and far-flung holidays in retirement.

Having worked hard for decades, they have watched their children go off on exciting gap years. Now they want to have their own adventures and explore the world.

Travel firms are reporting the rise of the “grey gapper” as globetrotting becomes increasingly popular with the older generation.

More and more over-55s are choosing to take a year out from work or, if they are already retired, spend their retirement travelling.

After all, it makes sense to finally visit those places you have always dreamed of. Such as China, Japan, South America, the US or Africa after years of hard graft and putting your family first.

Thanks to the way property prices have climbed over the decades, many retired homeowners are releasing the wealth tied up in their homes to fund these holidaysof-a-lifetime. Leading over-55s financial advisers Key Retirement report that about a third (33 per cent) of people taking equity release use it to have more holidays.

Equity release, also known as a lifetime mortgage, is only repaid either when you die or move into long-term care which means no monthly repayments.

Older travellers have the advantage of being able to go off-season and take longer breaks, making long-haul travel more affordable.

Travelling in retirement used to mean relaxing on the deck of a cruise liner to Madeira, golfing in Portugal, or winter beach breaks in the Canaries.

But in recent years, the demand for more adventurous holidays among the retired has soared.

There has also been a growth in the number of adventure tour operators offering a range of trips, which means you can join a group with a knowledgeable guide who will take the pain out of organising a trip.

Many have paid off their mortgage, have a good pension, and the kids have left home, so it’s an ideal time to go travelling. Figures from the Office of National Statistics show the number of British people over the age of 65 travelling overseas leapt by nearly 14 per cent from 2014 to 2016.

And a survey from the Association of British Travel Agents (ABTA) found that over- 65s are now more likely to take foreign holidays than any other age group.

Mobile phones and the internet mean travellers don’t need to be out of touch with family at home, while travel insurance is easier to access nowadays.

Other uses for equity release include home and garden improvements (64 per cent used the cash this way), clearing off debts (31 per cent), while one in five used it to pay off their mortgage, and 24 per cent to help family and friends.

Last year, retired homeowners released a record £3billion from their homes, taking advantage of rising house prices and low interest rates.

Dean Mirfin, technical director at Key Retirement, says: “Property wealth is making a huge contribution to retirement planning. Equity release is a real alternative for over-55s who are seeing traditional retirement income solutions squeezed by historically low interest rates, and pension incomes hit by historically low annuity rates.”