Around one in five (19%) people using equity release in 2025 did so to gift money to family members, new research by Canada Life has shown.

This was a 3% jump on the previous year, and the highest figure recorded in a decade of Canada Life’s customer data.

Canada Life said the upward trend had underscores the “increasing significance of intergenerational support”, with more older homeowners looking to assist children and grandchildren with financial milestones such as house deposits and education fees.

Home adaptations or improvements also emerged as the leading reason for using equity release in 2025, with 43% of applicants citing this when applying – a 10% rise on 2024.

While clearing an existing mortgage remained a key motivation, Canada Life also noted that 2025 marked the first year where it was no longer the leading reason for taking out equity release, as it dropped from 36% in 2024, to 27% last year.

Home finance proposition manager at Canada Life, Sadna Zaman, said that equity release is “increasingly supporting customers with a broader range of retirement ambitions and family needs”

“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,” Zaman commented.

“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.”

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