Majority of under-40s back proposal to access state pension early

A majority of younger adults support a proposal that would allow them to access part of their future state pension as a lump sum during their working lives, according to a new report from the Social Market Foundation (SMF).

The proposal, known as the Citizens Advance, would allow people aged between 28 and 40 who have accumulated at least 10 years of National Insurance credits to receive a lump sum equivalent to one year’s state pension. In exchange, their state pension would begin one year later than otherwise planned.

Research conducted for the report found that 54% of people aged 25 to 40 support the proposal, while only 6% oppose it. Depending on the design of the scheme, between 50% and 70% of respondents said they would be willing to take up the offer.

The report comes amid growing concerns about intergenerational wealth and homeownership. More than 70% of non-homeowning 18 to 40-year-olds surveyed said they believe property ownership is effectively out of reach for people their age, while 52% of first-time buyers received financial support from family members in 2024, with an average contribution of £55,572.

Under the core proposal, eligible individuals would receive £12,548, equivalent to the current annual value of the full new state pension. The report suggests debt repayment and housing costs would be among the most common uses for the money, with 18% of respondents saying they would use the funds to reduce debt and 16% citing housing-related purposes.

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.

“The Citizens Advance changes that. It’s not a handout – it gives younger people access to capital they’ve already earned, at the moment in their lives when it can make the biggest difference.

“Our research shows this isn’t just popular across the political spectrum, it’ll be transformative.