Millions of Brits under 40 eligible for £12,500 lump sum in radical new plan
The cost-of-living crisis has households across the United Kingdom tightening their pursestrings and keeping a close eye on their budgets.
Housing and shopping costs had already been sky-rocketing for years, a problem that has only worsened in 2026 with the USA's war with Iran leading to soaring oil prices.
It's been just one of the many issues an under-pressure Prime Minister, Sir Keir Starmer, has had to wrestle with, but a radical new advance pension plan could be just the tonic to help out millions of Brits. The only caveat? You must be between 28-40.
New pension plan could see Brits pocket thousands
The Social Market Foundation think tank has recommended that people under the age of 40 in the UK should be allowed to draw a year's worth of their state pension right now, to help lessen their financial issues in the ongoing tough financial climate.
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That would see those who applied for the advance receive £12,548, which is the current annual value of the full new state pension.
In exchange, the age when they start receiving the state pension when they reach retirement would be pushed back by a year.
Suggested by Andrew Lewin, Labour MP for Welwyn Hartfield, the plan has been titled the 'Citizens Advance.'
Jamie Gollings, deputy research director at 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.
"The cost of inaction is a generation locked out of homeownership, drowning in debt, and losing faith that the system can work for them at all.”
Who would qualify for a Citizens Advance?
According to the think tank, anyone aged between 28 to 40 would qualify for the Citizen Advance, but only if they have accumulated a minimum of 10 years of National Insurance credits.
Time spent caring for children or relatives could also count towards eligibility, based on the principle of contribution.
It's claimed that the majority of 25-40 year olds at 54% were in favour of the proposal, even if they wouldn't take it themselves. Only 6% saw it as negative.
Topics: Money, Cost of Living
Daniel Murphy