Home wealth boosts over-55s holiday spending

Retired homeowners are turning property wealth into dream holidays with average spending on trips abroad hitting £6,785, analysis from leading over 55s retirement specialist Key Retirement has found.

Its data shows nearly one in three (30 per cent) customers taking out equity release spend some of the cash on holidays with some using the money to help fund holiday home purchases.

Equity release is proving essential for keeping close to loved ones

The average amount released to fund holidays is nearly £7,000 while those who are buying holiday homes in the UK and abroad release an average of £58,850 with Spain still a popular destination for home ownership abroad.

Holiday spending includes once in a lifetime trips to destinations many only dream of visiting as well as UK staycations highlighting how property wealth is helping to improve lifestyles in retirement.

For some equity release is also proving essential in keeping close to loved ones. Many have children or other relatives living overseas in more expensive to reach locations such as Australia, New Zealand, Canada and the USA.

Dean Mirfin, technical director at Key Retirement, said: "With an average spend approaching £7,000 for holidays, travel is a popular choice for those unlocking cash from their homes, often alongside other uses to improve their lifestyle in retirement.

"Whether it’s jetting off to exotic climates, purchasing a holiday home or visiting relations in far-flung corners of the world, property wealth is providing the opportunity for over-55s to visit places they have previously only dreamed of. It is also enabling many to have a 2nd home in the UK or abroad, which for many would not be possible without access to the wealth tied up in their main homes."

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