Bank of Grandad because Gran is less generous
03 December 2016
- Men spend nearly 50% more on gifts for families from their property wealth
- And they spend more on cars and holidays than women
- Women outspend men on using equity release towards buying new homes
Retired men are more generous with gifts to family than women when it comes to turning property wealth into cash, new analysis* from leading over 55s retirement specialist Key Retirement found.
Its research among more than 8,000 customers shows families banking on financial help will receive on average nearly £48,000 if the customer is male compared with £32,400 if the customer is female.
And the analysis of male and female spending of property wealth underlines that it is men who are the bigger spenders than women across almost all categories researched by Key.
Men on average spend £13,350 on cars with property wealth compared with nearly £11,000 for women and splash out £7,500 on holidays compared with women’s £6,350. Even when it comes to home improvements men are the big spenders with £11,100 compared with £9,300 for women.
Women only outspend men when it comes to using equity release cash towards buying a new property – female customers on average raise £79,200 compared with £72,500 that men will raise towards a new home.
The data underlines the growing range of ways retired homeowners are using property wealth to enhance retirement living with customers spending on everything from clearing debts and mortgages to funding treatment for pets and launching new businesses.
Figures highlight the growth of the equity release market which is on course to exceed £2 billion this year, a new record – in the nine months to October around £1.58 billion has been released with pensioners withdrawing £6.8 million a day**.
Dean Mirfin, technical director at Key Retirement (www.keyadvice.com), said:
“Grandad seems to be more generous than gran when it comes to gifts for families and more extravagant when it comes to spending on himself.
“The data shows some interesting differences between men and women with women arguably more careful and cautious while men are more likely to spend more.
“Whilst purchasing and spending habits vary the bigger picture is clear – equity release makes a major difference to life in retirement and provides a significant amount of financial freedom to allow people to prioritise their spending in a way that suits them and their lifestyle.”
The research also highlights areas where both men and women are spending a similar amount, indicating both are agreed on the importance of these areas. These include spending on consumer items, estate and funeral planning and providing financial support.
Anyone looking to release equity from their home can get Key’s independent guide to equity release by calling 0800 531 6027 or visiting www.keyadvice.co.uk/equity-release/request-a-free-guide