According to a report by Bridgewater Equity Release, in 2007 just 1% of clients released cash from their homes to fund long term care.

However, in the past six years, this number has jumped to 10%.

The report also revealed a number of other significant changes to the reasons why consumers have taken out equity release plans over the past six years.

Traditionally, customers used their released cash to fund various forms of secured and unsecured debt.

In 2007 the top four reasons why customers chose a Bridgewater reversion plan were: 1) to repay a mortgage (24%); 2) to undertake home improvements (17%); 3) to fund debt consolidation (13%); and 4) to travel (12%).

However, this year the top four reasons have changed, with those releasing cash for home improvements rising to 23%, those using it to travel rising to 15%, while customers wanting to repay a mortgage has dropped to 13%.

Chris Prior, manager from Bridgewater Equity Release said: “While large numbers of customers continue to use their cash to repay debt – both secured and unsecured – we have seen an increase in the popularity of funding home improvements, travelling, putting money away for a rainy day and ensuring that income levels into retirement are maintained.

“What is clear from our research is that individuals in retirement don’t just have ambitions and goals they’d like to achieve but must also think very carefully about how they fund a growing list of financial commitments.

“We can see that with pension levels dropping more customers are opting to release cash to supplement their income whilst at the same time looking at how they can fund their long-term care needs. We have seen a noticeable increase in the number of customers using equity release for this very purpose and I suspect that, as the State’s support and role in our lives gets less and less, this will continue to grow.”