PROPERTY wealth is boosting the standard of living for many Scottish pensioners by more than £86 million.
Retired Scottish homeowners have received an average of more than £55,000 tax-free by releasing wealth from their homes in the past year, research has found.
The majority of that money, 49 per cent, goes towards home and garden improvements, with 34 per cent for clearing debts.
However, families and friends also benefit, with just over a fifth being given some form of financial support by pensioners.
The smallest amount, 16 per cent, is spent going on holiday.
Dean Mirfin, technical director at Key Retirement, the finance specialists carrying out the study, said: “Equity release is a real alternative for pensioners who are seeing traditional retirement income solutions squeezed by historically low interest rates.
“Property wealth is making a huge contribution to retirement planning and that is demonstrated by the wide range of issues Scottish pensioners can tackle.”
The data shows that 1,600 Scottish pensioners used their homes to help fund retirement last year.
On average they released £55,200 from their home, which were valued at an average of £190,800. The average equity release customer in Scotland was aged 71.
The retired homeowners gave family members financial assistance on money for deposits to buy their own home and for living expenses, along with other uses.
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