Equity release lending is on course for a record year after topping £1 billion in the first nine months of 2014.
That is equivalent to 95% of last year's total, with three months of the year still to go.
Lending totalled £375.5 million in Q3, the largest quarterly amount since records began in 2002, according to new figures from the Equity Release Council.
It was up 15% on the previous quarter, when lending totalled £325.6 million, and 32% year-on-year from £284.1 million in Q3 2013.
There were more than 5,500 new customers in Q3, the most recorded in a single quarter for six years.
The Equity Release Council hailed the figures as evidence that more people are looking to their housing wealth when they consider their financial plans for later life.
Lump sum plans accounted for 40% of the total market by value in Q3 2014, up from 34% in the same period last year.
Nigel Waterson, chairman of the Equity Release Council, said this was a notable shift, as customers took out larger lump sums to pay off debts such as outstanding mortgages, or to fund one-off expenses.
Drawdown made up the remaining 60% of the market in Q3, down from 66% last year.
Waterson said: "The latest lending figures show equity release is proving an invaluable financial planning solution for over-55s approaching retirement as pension savings fail to cover rising costs.
"We've seen record breaking growth this quarter as the value of lending exceeds all previous benchmarks.
"Rising house prices also mean that customers have a growing pool of equity at their disposal and can still keep a large proportion of the value of their house intact.
"To fulfil the potential the market is clearly capable of, it is critical that we continue educating consumers about the benefits of equity release and increase the range of products at their disposal."
Alice Watson, product and communications manager at Stonehaven, said equity release is now "the runaway success story of the UK mortgage market".
"At a time when mortgage lending is easing across the general population, baby boomers who find themselves asset rich thanks to rising property prices but cash poor are realising the benefits and freedom of unlocking the capital in their homes.
"We expect to see further uplift as more people carrying residual mortgage debt through interest-only mortgages look to repay those debts over the coming years."
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