The research from Key Retirement Solutions shows that pensioners releasing equity from their homes rank home and garden improvement as the top reason for taking out a plan. It is estimated that a whopping £540 million will be raised this year alone by pensioners to fund expenditure on their homes and gardens.
Key’s latest review of the equity release market shows that in the 2nd quarter of 2009 59% of those releasing equity did so to spend money on their home and gardens, up from 56% for the same period last year. Popular reasons include: new bathrooms and kitchens, conservatories and general decoration and maintenance. Also many look to use the value tied up in their homes to fund garden projects, typically aimed at making the garden more manageable.
DIY stores have for a long time recognised the importance of this growing group of the population who are prepared to spend in their retirement to make sure that they continue to live in a home which they admire and enjoy. B&Q have their Diamond Card for over 60s which gives customers a 10% discount every Wednesday. Focus have their Privilege discount card for the over 60s which again offers a 10% discount but which can be used every day of the week.
Dean Mirfin, Key Retirement Solutions group director, said: “Pensioners play a huge part in the UK economy and as more and more look to maintain and improve their homes and gardens equity release is proving to be an ideal source of funding. Those retailers who recognise the importance that pensioners’ play will no doubt benefit now and in the future from the wealth that they hold and their strong desire to look after and maintain their homes."
