Data released by UK retirement provider Canada Life has revealed that more of its potential borrowers than ever before intend to use funds from equity release to gift money to family members.
In 2025, 19% of those enquiring about equity release said their reason for considering the loan was to give money to family members, up 3% on the previous year and the highest figure recorded in a decade of data collection.
Intergenerational support is increasingly significant, Canada Life said, with older homeowners taking action to help children and grandchildren with funding for milestones such as home deposits and education costs.
The leading reason for taking out an equity release loan was home adaptations, including those made for comfort or safety, and home improvements. Some 43% of applicants stated that this was their purpose for securing the funds, up 10% on the previous year.
For the first year since Canada Life began recording data, paying off an existing mortgage was no longer the leading reason for equity release, with the figure down from 36% in 2024 to 27% in 2025.
There was a significant increase in borrowers who wanted an emergency fund, up from 8% in 2024 to 21% in 2025. This could signify a cautious approach to finances, with customers wanting to have a safety net in place to cushion them in the event of unforeseen expenses, Canada Life said. The lender suggests this could be in response to economic uncertainty or personal health concerns.
“It’s clear from Canada Life’s data that equity release is increasingly supporting customers with a broader range of retirement ambitions and family needs, said Sadna Zaman, home finance proposition manager at Canada Life.
“No longer regarded as a last resort, equity release is supporting customers to enhance their lifestyle and homes, build financial resilience, and support estate planning.
“The majority of customers citing home improvements as their primary reason for releasing equity highlights a growing desire to remain in and invest in their own homes. At the same time, more customers are incorporating equity release into their estate planning strategies, using property wealth to pass assets to the next generation in a timely and tax-efficient way. This is enabling families to support loved ones with major milestones, such as home purchases or education, while also potentially reducing inheritance tax liabilities.
“The range of uses for equity release underscores the importance of tailored, expert advice. Equity release may not be the solution for everyone, but advisers play a vital role in helping customers make informed, confident decisions about their financial futures in later life.”
