Cash raised by releasing equity from homes put £7.1bn into the UK economy last year, according to Legal & General research.
The firm’s ‘silver spenders’ report analysed the current direct, indirect and induced impact of released equity on economy and industry.
It found that for every £1 of housing wealth accessed through equity release products, £2.34 is generated for the British economy.
Lifetime mortgage sales tripled between 2013 and 2017, rising from just over £1bn to more than £3bn in 2017, according to the Equity Release Council.
Manufacturing benefits the most from equity release, to the tune of £1.34bn.
The construction sector got a £349m injection, while health and social work got £203m.
L&G found that equity release supports 37,100 jobs directly and indirectly across the UK.
Legal & General Retirement Retail chief executive Chris Knight says: “Not only are these older homeowners accessing equity that would otherwise have remained locked up in their properties, whether for a holiday or a home renovation, but these funds are filtering through the economy as well.
“That is boosting the spending power of our businesses, generating jobs and spurring economic growth across the UK.”
The research was carried out by Legal & General Home Finance and the Centre for Economics and Business Research.