Some 74% of over 50s that have taken out equity release say doing so made them feel happier, SunLife’s latest report, “Life Well Spent,” has revealed.
The report found that people over 50 can increase their overall happiness by spending money on holidays, home improvements, and cars.
Spending £11,402 on holidays can boost happiness for three-quarters of people over 50, with UK breaks and holidays abroad both providing a positive impact.
Meanwhile, investing in home improvements such as extensions, landscaping, and new kitchens, costing an average of £29,770, improved happiness levels for nine in 10 homeowners.
The report also found that paying off debts, with the average outstanding mortgage amount for people over 50 being £64,786, can improve happiness for 85% of those who have done so.
Moreover, early inheritance, with an average gift of £20,778, made 90% of people who gave a cash gift for loved ones happier.
Making other major purchases, such as a car or holiday home, costing an average of £19,097, made 81% of those who had done so happier.
Equity release, which is an increasingly popular way for those without savings or disposable income to unlock spending opportunities, was found to improve overall happiness levels for 74% of those who had taken out equity release.
SunLife CEO, Mark Screeton, said that people need to know their big purchases will be worth the spend, and he hopes that their report’s findings will help people make informed decisions about their spending choices.
SunLife CEO Mark Screeton said: “It’s always daunting to commit to big spends, especially for retirees no longer receiving a full income.
“So, I hope our findings can be useful for people deciding whether or not to take the plunge.
“And, with the protections and product features of many modern equity release offerings, more and more people can make these dreams a reality for themselves.”
You can read the full report here.
