Tougher regulation introduced since the Mortgage Market Review has made it harder for the over-55s to get traditional mortgages and pushed many into equity release instead.
The proportion of younger customers aged 55-64 taking out equity release rose sharply in the second half of last year, according to a new report by the equity release Council (ERC).
In the first half of the year they made up to 17% of all new equity release customers, but this rose to 20% in the second half.
With the total number of plans sold rising sharply, it added up to a 32% rise in the number of equity release plans sold to 55-64 year olds in the last six months of 2014.
The ERC said this suggests that changes in the residential mortgage and pensions markets are having an impact on the profile of equity release customers.
It said people are finding it increasingly difficult to access residential mortgage finance later in life under MMR, particular if the desired term stretches beyond their normal retirement age.
Many are turning to equity release instead to make ends meet.
Regulation isn't the only factor driving growth in younger equity release customers.
More borrowers with interest-only mortgages are approaching their final repayment date, and many are turning to equity release if they have no other way of clearing the debt.
ERC chairman Nigel Waterson said: "Paying off the last of an existing mortgage is often one of the biggest financial deadlines people have to face beyond the age of 55.
"The flexibility of equity release enables them to wipe the slate clean while also using their housing wealth to meet a range of other needs."
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