Equity release schemes may rise in popularity when future government ‘defaults’ on retirement promises.

A future UK government will be forced to default on retirement promises due to the "ballooning" of the country’s current deficit, it has been claimed.

This could lead a number of people to seek equity release advice to look into ways of boosting their retirement funds.

According to Oliver Russ, manager of the Ignis Argonaut European Income Fund, the default could come any time after 2020 as none of the three main parties have comprehended the "dire" state of the UK’s finances.

"We are not going to grow our way out of trouble, given the current policies of the major parties," he said.

"So I think it is clear that the government in a decade or two will be forced effectively to default on state pensions, or seriously reduce the benefits and health care costs associated with those in retirement."

The expert’s comments could inspire a number of homeowners to think about using the value of their property to help fund their retirement.