A radical new proposal from the Social Market Foundation think tank suggests allowing Britons under 40 to access a lump sum from their future state pension. The 'Citizens Advance' plan would provide eligible individuals with £12,548 – equivalent to one year of the full new state pension – to help with current financial pressures.
In exchange, recipients would see their state pension age pushed back by one year. The plan is aimed at 28 to 40-year-olds who have at least 10 years of National Insurance contributions, with time spent caring for children or relatives also counting towards eligibility.
Labour MP Andrew Lewin, who proposed the idea, described it as a 'state alternative to the bank of mum and dad'. A survey of 25 to 40-year-olds found 54% supported the proposal, with 18% saying they would use the money to repay debt and 16% for housing costs.
Jamie Gollings, deputy research director at the Social Market Foundation, said: 'Britain is facing a crisis of opportunity. Whether you can buy a home, pay down debt, or start a family increasingly depends on the wealth of the parents you were born to – not the work you've put in.'
However, there is no indication yet that the government will adopt the policy. The plan comes amid rising financial pressures on young adults, with the average first-time buyer age rising to 34 and average non-mortgage debt standing at £4,300 per adult.
