Young people could delay getting their pension by a year in exchange for a lump sum of more than £12,500 to help get them on the property ladder, under a new proposal. Billed as a 'state alternative to the Bank of Mum and Dad', the Social Market Foundation has called for the advance to be offered to those who have worked for ten years. In the current financial year, the full, new state pension is worth £12,547.60 for those who have 35 years of National Insurance credits. By taking the money, you would have to work an extra year before qualifying for the state pension - which is currently set at 68 for the 28-year-olds who the think tank suggested should be eligible for the advance. Though the money could be used for any purpose under the plans, the think tank suggested that using it towards a house deposit could be a popular option. If a couple both received the payment, which the think tank is calling the 'Citizens Advance', the money could nearly fully cover a 10 per cent deposit on the average home in Britain which sits at around £268,000. Helping hand: The Social Market Foundation has called for a state pension advance to be offered to those who have worked for ten yearsThe SMF said: 'The Citizens Advance would give people a choice – receive a lump sum now in exchange for postponing the point at which they start receiving their state pension. It is not a giveaway.'Personal and family wealth levels can alter the course of people’s lives. The "Great Wealth Transfer" will see £5.5 trillion passed down by Baby Boomers over the next two decades, but just a third of adults expect to benefit from inheritance.'As the Great Wealth Transfer takes place, the sense of injustice around wealth inequality may only therefore increase without government action. Something has to give.'The think tank estimated the proposals would cost £8billion a year initially, but this would eventually be recouped over time as those who received the advance would have their state pension payments delayed. Britain spent around £146.1billion on state pensions in 2025-26, according to the Department for Work and Pensions. The SMF surveyed 25 to 40-year-olds to ask what they thought of the proposal and what they would use the money for. The largest group of respondents, 18 per cent, said they would use the money to pay back debt, while 16 per cent said they would use the money to save for a house deposit and 13 per cent said they would build a rainy-day fund. Three per cent said they would spend it on items such as clothing or electronics. Of those who were surveyed, 54 per cent were positive towards the idea while just 6 per cent opposed it. Just 4 per cent said they would never take up the offer.One respondent told the think tank that the money could be a 'chance to actually be able to start again and get my life in order, the possibility of being able to have a good life instead of the one I currently lead.' Another woman, 34, said: 'It would help dramatically when trying to secure a property and some stability for my family. It would change our entire trajectory.' The obvious downside of taking the money would be having to work an extra year before becoming eligible for the state pension. And some worried that the significant injection of cash could cause house prices to rise, if many people used it for a house deposit.One X user said: 'Without proper reform to the housing/mortgage system, wouldn't this just mean that house prices would go up by about £12,500? Meaning the targeted demographic would end up having to retire later, just to provide a present-day wealth transfer to current house owners?' SMF argued that it would expect any inflationary effect on the housing market to be 'very modest'. It said that because only 16 per cent of people would use the advance to buy property, the impact on the market would be minimal. It was revealed this week that the majority of first-time buyers received financial help from family members to enable them to get onto the property ladder.Some 53 per cent were helped by their family to fund their deposit, according to Savills research. The gifts had a total value of £8.3billion in 2025. When inheritance is included, family members gifted £11billion to first-time buyers, showing the reliance on family wealth to purchase property.The average age of a first-time buyer in England is now 34, according to Skipton Group. It was 29 in the 1990s. How to find a new mortgage Mortgage rates have soared after conflict with Iran has driven up inflation expectations and dashed hopes of interest rate cuts.If you need a mortgage because you are buying a home, or your current fixed rate deal is due to end, you should explore your options as soon as possible. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with expert mortgage advice.Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.Or use L&C’s online Mortgage Finder to search thousands of deals from more than 90 different lenders to discover the best deal for you.This is Money's mortgage tips What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it.Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying arrangement fees. If you do this and don't clear the fee on completion, interest will be paid on it over the term of the loan.What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power.What about buy-to-let landlords?Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. > Find your next mortgage deal with This is Money and L&CMortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage