In the first three months of 2014 over a third (35%) spent some or all of their money on holidays, while more than two-thirds (67%) spent some or all on home and garden improvements.
Comparatively in Q1 2013 just under a third (30%) used equity releasefor holidays while 58% was spent on the home or garden.
Dean Mirfin, group director at Key Retirement Solutions, said: “The rise in retired homeowners using their property wealth to fund home improvements and holidays reflects confidence in the economy and also in equity release.
“The Budget changes announced in March have revolutionised pensions and fundamentally changed how people save for and fund retirement by using all their assets including property wealth.
“Equity release is set for continued growth focused on innovation and advice.”
The average customer released £61,230 in housing wealth in Q1 2014, up from £56,710 in Q1 2013, with the increase being driven by rising house prices.
The total equity released in Q1 2014 soared by 29% year-on-year to £339.80m, while plan sales rose by 10% to 5,030.
More money was released in 11 out of 12 regions across the country, as it nearly doubled in Northern Ireland.
The South East and London recorded growth in total value released of nearly 37% and 41% respectively, the South West saw growth of 50% while East Anglia recorded 40%.