More than half (54 per cent) of younger adults support a proposal that would allow them to access part of their state pension early in exchange for delaying their retirement benefits, according to new research from the Social Market Foundation (SMF).

The think tank's report, Citizens Advance, found that 54 per cent of 25- to 40-year-olds viewed the idea positively, compared with just 6 per cent who are opposed.

It also suggested that between 50 and 70 per cent of people in the age group would take up the offer, depending on how the scheme is designed.

The proposal, first put forward by Labour MP, Andrew Lewin, would allow eligible individuals aged between 28 and 40 to receive a lump sum equivalent to one year's full new state pension - currently £12,548 - in return for their state pension beginning one year later than it otherwise would.

Under the model outlined by the SMF, eligibility would be restricted to those who have built up at least 10 years of national insurance credits, with caring responsibilities also potentially counting towards qualification.

The report argued that the policy could help address growing intergenerational wealth disparities, highlighting that more than two-thirds of non-homeowning 18- to 40-year-olds believe the dream of homeownership is "dead" for their generation.

It also pointed to the 'great wealth transfer', which is expected to see £5.5trn passed down by baby boomers over the next two decades, despite only around a third of adults expecting to benefit from inheritance.

In addition, the report noted that the 'bank of mum and dad' provided nearly £10bn in support in 2024, with 52 per cent of first-time buyers receiving family assistance towards purchasing a property.

The SMF suggested that two people taking the Citizens Advance could almost fully fund a 10 per cent deposit on an average UK home.

Meanwhile, polling undertaken by Opinium also found that 45 per cent of respondents would be more likely to vote for the party that introduced the policy.

When asked how they would use the money, debt repayment was the most common response, selected by 18 per cent of participants, while housing-related spending ranked second at 16 per cent.

However, the report identified concerns around trust and long-term policy stability. Among those surveyed, 51 per cent expected the state pension age to rise to at least 70, while 21 per cent believed it could increase to 75 or higher.

Focus group participants also expressed concerns that future governments could change the terms of the arrangement or further increase the state pension age.

The report estimated that the policy could initially be delivered for around £1.3bn in its first year if rolled out gradually to a single age cohort, with costs rising towards £7bn a year as more groups become eligible.

The SMF argued that most of the upfront expenditure would ultimately be recouped through future state pension savings, estimating that 89 per cent of costs would be recovered under its central projection.

SMF deputy research director, Jamie Gollings, said Britain was 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," he stated.

"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."

Gollings urged policymakers to explore the proposal further, warning that the cost of inaction could be "a generation locked out of homeownership, drowning in debt, and losing faith that the system can work for them at all".

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