Unlocking later life choices: Why are our customers releasing equity?

Our latest reasons for loan data shows how homeowners are navigating later life, balancing financial priorities, lifestyle aspirations and support for loved ones. Far from being a last resort, equity release is increasingly being used as a flexible tool to help people shape retirement around their individual needs and goals.

Homeowners continue to use equity release in ways that closely reflect the trends we saw in 2025, with home improvements and adaptations remaining the most common reason for releasing equity. Many customers are using housing wealth to upgrade kitchens and bathrooms, improve comfort, make practical changes for later life, and in some cases invest in greener or more energy-efficient homes. With 43% of applications citing home adaptations or improvements in both periods, it is clear that maintaining and enhancing the home remains a core priority for later-life borrowers.

Clearing an existing mortgage and strengthening financial resilience also feature strongly. Alongside mortgage repayment, customers continue to use equity release to support day-to-day living, consolidate existing debts and build emergency funds. Against a backdrop of ongoing cost-of-living pressures, these motivations highlight the importance many homeowners place on achieving greater financial flexibility and reducing financial stress. Compared with 2025, these reasons have remained relatively stable, suggesting that affordability and preparedness for unexpected expenses continue to be key considerations.

Lifestyle spending remains an important part of the picture. Holidays, new cars and other discretionary purchases continue to feature in the H1 2026 data, reflecting a desire among many customers to enjoy an active and fulfilling retirement. The data suggests that some homeowners are willing to use housing wealth to support experiences and purchases that enhance their quality of life, rather than reserving it solely for essential spending.

Support for family remains a significant motivation, though it has moderated compared with 2025. Customers continue to use equity release to help children and grandchildren with property deposits, debt reduction and other important milestones. However, gifting to family fell from 19% of applications in 2025 to 15% in H1 2026, suggesting that support for loved ones increasingly sits alongside other priorities such as personal comfort and financial security, rather than outweighing them.

Health, care and significant life events remain smaller but highly important drivers for some customers. Equity release continues to help homeowners fund property adaptations that improve comfort and safety, meet care and healthcare costs, and navigate major life changes such as divorce or bereavement. As in previous years, housing wealth continues to provide an important source of financial support when circumstances change.

Taken together, the H1 2026 data points to a continuation of the themes seen throughout 2025. Home improvement remains the leading motivation, whilst mortgage repayment, day-to-day living support and emergency funding continue to play prominent roles. At the same time, the reduction in gifting compared with 2025 suggests a slightly more balanced mix of motivations, with homeowners increasingly focused on combining personal comfort, financial resilience and support for family within their broader retirement plans.

This builds on the trend highlighted in our 2025 full-year results, where equity release was increasingly being used for a range of objectives rather than a single financial need.

Sadna Zaman, Proposition Development Manager at Canada Life, commenting on the latest reasons for loan data, said:

“Our H1 2026 data shows that the core story from 2025 remains intact: customers are using equity release to invest in their homes, strengthen their finances and support family, but with a more balanced spread of motivations. Home improvements and financial resilience remain central, whilst lifestyle spending and gifting continue to play important supporting roles.

What has not changed is the need for careful, tailored advice. Equity release is now a flexible solution that can support comfort, security and intergenerational planning, rather than a single-purpose product. Advisers have a crucial role in helping clients weigh these different priorities, understand the long-term implications and fit property wealth into a broader retirement strategy.

When used thoughtfully, equity release can give clients greater confidence and choice in how they live – and how they support those closest to them – in later life.”

Top reasons for loan 

Sources

1. Canada Life, 2026. Reasons for loan given for initial advance applications. Customers were able to choose multiple options for their reasons for loan.
2. Includes two separate reasons: Home adaptations for comfort/safety and Home Improvements (e.g. green/efficient living)

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