Researchers say the so-called \u201cCitizens Advance\u201d would be a \u201ctransformative\u201d policy for those aged 18 to 40 who are struggling with issues such as home ownership, student debt and lack of funds to start a family.<\/a><\/p>\n Those who opt for the scheme would have to retire a year later \u2013 at 67 under current rules \u2013 in exchange for gaining early access to the cash,<\/a> the new report from the Social Market Foundation (SMF) proposes.<\/p>\n The early state pension drawdown would be worth \u00a312,548 at present rates, and only be available to those who have accumulated at least 10 years worth of National Insurance credits.<\/p>\n The proposal is broadly backed by young people, polling by the SMF shows, at 54 per cent support from of 25 to 40-year-olds. <\/p>\n Jamie Gollings, deputy research director at the SMF, said: \u201cBritain 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<\/a> you were born to \u2013 not the work you’ve put in.<\/p>\n \u201cThe Citizens Advance changes that. It\u2019s not a handout \u2013 it gives younger people access to capital they’ve already earned, at the moment in their lives when it can make the biggest difference.\u201d<\/p>\n The foundation points to findings that argue Britain is experiencing a \u2018Great Wealth Transfer\u2019 period, with an estimated \u00a35.5 trillion to be passed down by the Baby Boomer generation \u2013 those born between 1946 and 1964 \u2013 over the next two decades.<\/p>\n Get a free fractional share worth up to \u00a3100. Terms and conditions apply.<\/p>\n Go to website<\/a><\/p>\n ADVERTISEMENT<\/p>\n Get a free fractional share worth up to \u00a3100. Terms and conditions apply.<\/p>\n Go to website<\/a><\/p>\n ADVERTISEMENT<\/p>\n Only a third of adults expect to be beneficiaries of inheritance over the next few years, however, which researchers warn will widen the UK\u2019s wealth gap.<\/p>\n Some economists have criticised the proposals, with investment platform AJ Bell arguing they would offer \u201cshort-term gain\u201d for \u201clong-term trade off\u201d.<\/p>\n Rachel Vahey, head of public policy at the firm, said: \u201cThe obvious potential benefit to this particular proposal is it could deliver a much-needed cash boost at a time many people really need it, particularly if they\u2019re trying to repay debt or save for a deposit on a first home.<\/p>\n \u201cThe downside is that in doing so they would have one year less of state pension<\/a> income to rely on in later life.\u201d<\/p>\n Turning to the potential for future governments to change the state pension, she added: \u201cYounger people may be better off building their own retirement savings through workplace and personal pensions<\/a>, rather than relying too heavily on a benefit that is likely to change before they retire.\u201d<\/p>\n The SMF said the policy could cost \u00a31.3bn in its first year, if restricted to only those born after 1998 and only offered at the point they reach 10 years of National Insurance contributions.<\/p>\n![\"\u2018Whether](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/06\/2273240050...jpeg\")
\u2018Whether you can buy a home, pay down debt, or start a family increasingly depends on the wealth of the parents you were born to \u2013 not the work you’ve put in,\u2019 the SMF said (AFP\/Getty)<\/p>\n![\"Trading](\"https:\/\/static.independent.co.uk\/static-assets\/images\/mobile-stores\/Trading_212.svg\")
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Capital at risk.<\/p>\n<\/p>\n
Capital at risk.<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/06\/01832af959ed7aceada9eeadd9105a43Y29udGVudHNlYXJjaGFwaSwxNzcwMzkwMDY4-2.34653068.jpg\")
A DWP spokesperson said: \u2018Unlike other savings, a State Pension cannot be rebuilt once accessed ahead of time, meaning those who do so may find themselves with reduced income later in life.\u2019 (PA Archive)<\/p>\n