A surge of retired New Zealanders are leveraging their homes to free up cash.

Heartland Bank has reported a 20 per cent uptick in reverse mortgage approvals over the past six months.

It allows homeowners to take out a mortgage on their house which isn't paid back until the property is sold.

Enable Me Managing Director Hannah McQueen told Heather du Plessis-Allan it's concerning.

"I know they're not prepared for retirement - the question is how long do we need to do it for, and what's our plan to make sure we can get through retirement."

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