What is a a year's state pension worth if you invested it now?

A new proposal to give young people a lump sum of £12,500 in return for delaying their state pension by a year has got Britain talking.

Think tank the Social Market Foundation suggested that the advance be offered to young people who have worked for ten years, at around the age of 28.

It said the money could act as a 'state alternative to the Bank of Mum and Dad' and help them to get on the housing ladder.

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.

Those who took the money 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.