Jasmine Birtles
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The Equity Release Effect – How Releasing Cash from Your Home Can Boost Your Mental and Physical Health
Moneymagpie Team
14th May 2025
As we age, maintaining a healthy and fulfilling life becomes more than just a wish—it becomes a priority.
But for many homeowners over 55, the stress of rising living costs, healthcare expenses, and family responsibilities can take a toll on both mental and physical well-being.
For some, their biggest asset—their home—may hold the key to renewed peace of mind and vitality.
In this in-depth article, Bert Hofhuis, founder of TheEnquirer, explores the powerful connection between financial freedom and overall well-being, and how equity release can play a surprising role in improving quality of life.
- The Hidden Stress of Financial Insecurity in Later Life
- Understanding Equity Release: A New Lease on Life
- Boosting Mental Well-Being Through Financial Freedom
- Physical Health Benefits of Releasing Equity
- Creating a Space for Peace: Home as a Sanctuary
- Avoiding Common Emotional Pitfalls with Equity Release
- The Psychological Value of Choice and Control
- Final Thoughts: A New Chapter of Health and Happiness
The Hidden Stress of Financial Insecurity in Later Life
Even for those who own their homes outright, cashflow in retirement can be tight.
Pensions may not stretch far enough to cover all living costs, let alone unexpected expenses such as medical care, home repairs, or supporting family.
This financial strain can silently weigh on individuals, often leading to:
- Anxiety about the future
- Poor sleep or insomnia
- Strained relationships
- Delayed medical treatments
- Social withdrawal
“Financial pressure can be invisible, but its effects on health are very real,” says Bert Hofhuis. “And yet, many people are living in valuable homes without realising they could use that asset to change their lives.”
Understanding Equity Release: A New Lease on Life
Equity release lets homeowners aged 55 or over access the wealth tied up in their property as tax-free cash, while continuing to live in their home.
The most popular type is a lifetime mortgage, which doesn’t require monthly repayments and is only settled when the homeowner passes away or moves into long-term care.
This financial flexibility can give people the means to:
- Pay off debts
- Fund medical treatments
- Make home improvements for comfort or accessibility
- Enjoy holidays, hobbies, or social outings
- Reduce reliance on family or benefits
The result?
Lower stress levels, increased independence, and a renewed sense of control.
Boosting Mental Well-Being Through Financial Freedom
Studies consistently show that financial security is a key contributor to emotional well-being.
For older adults, having access to cash when needed can lead to:
- Improved self-esteem: Knowing you can support yourself and others
- Greater optimism: Feeling free to make plans and enjoy life
- Reduced worry: Letting go of concerns about bills or unexpected costs
- Stronger relationships: Being able to give generously without guilt
“Freedom from financial fear creates space for joy and peace,” Hofhuis explains. “It’s not just about money—it’s about mindset.”
Physical Health Benefits of Releasing Equity
When financial worries decrease, people often find it easier to take care of their bodies.
Releasing equity can allow homeowners to:
- Upgrade to more accessible living conditions – such as stairlifts or walk-in showers
- Invest in private medical care or therapies – cutting waiting times and improving recovery
- Afford better nutrition – through healthier food choices or delivery services
- Stay active – by joining gyms, taking fitness classes, or enjoying outdoor activities
- Manage long-term conditions more effectively – through access to equipment or medication
These lifestyle changes may seem simple, but they can significantly impact longevity, mobility, and overall happiness.
Creating a Space for Peace: Home as a Sanctuary
Many homeowners feel emotionally tied to their property.
It holds memories, comfort, and a sense of identity.
Equity release ensures you can remain in your home while improving it for the years ahead.
Whether it’s a new kitchen, garden upgrades, or simply repainting the walls, small improvements can renew a home’s sense of joy.
More than just bricks and mortar, a comfortable and safe living environment is crucial for maintaining mental clarity and emotional balance in later years.
Avoiding Common Emotional Pitfalls with Equity Release
While equity release can be empowering, it’s essential to approach it with care.
Bert Hofhuis advises homeowners to avoid decisions driven purely by emotion. Instead, consider:
- Discussing plans with family – to avoid future misunderstandings
- Reviewing long-term needs – and leaving room for unexpected expenses
- Seeking regulated advice – from a qualified financial adviser
- Understanding the full cost – including how interest accrues over time
- Exploring alternatives – such as downsizing or government support
Used wisely, equity release can lift a burden. But it must fit into a broader, well-thought-out retirement strategy.
The Psychological Value of Choice and Control
One of the most overlooked benefits of equity release is the restoration of personal agency.
Too often, older individuals feel boxed in by their finances—unable to help loved ones, hesitant to spend on themselves, and uncertain about the future.
Releasing equity offers the power to choose: to live the life you want, when you want.
That freedom—especially when achieved later in life—can be transformative.
As Hofhuis puts it, “We talk a lot about physical health and mental health, but we forget the role of personal freedom. When people feel in control of their life again, it unlocks everything else.”
Final Thoughts: A New Chapter of Health and Happiness
Equity release is not just a financial strategy—it’s a lifestyle solution.
For the right person, at the right time, it can reduce stress, improve physical comfort, and provide the financial breathing room needed to enjoy life fully.
Whether it’s funding better healthcare, creating a safer home, or simply affording the joys of retirement, equity release can open the door to a healthier and happier later life.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
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