Labour is facing calls to give younger workers early access to part of their future State Pension in a bid to help them with major life costs such as buying a home.
Supporters of the idea argue it could provide a financial boost when people need it most, rather than requiring them to wait until retirement.
A Labour-aligned think tank has urged the Government to allow some younger workers to withdraw a lump sum from their future State Pension decades before reaching retirement age.
The Social Market Foundation has proposed that people aged between 28 and 40 who have built up at least 10 years of National Insurance contributions should be able to access £12,548 as a one-off payment.
In exchange, they would agree to delay claiming their State Pension by 12 months when they reach retirement age.
The proposal was originally put forward by Labour MP Andrew Lewin.
According to the think tank, the scheme could cost the Treasury up to £7billion in its first year.
Polling commissioned by the organisation found that more than half of people aged between 25 and 40 support the idea.
The survey also found that 46 per cent said they would be more likely to vote for a political party that introduced the policy.
To qualify, workers would need to have built up at least ten years of National Insurance contributions counting towards their pension entitlement.
The Social Market Foundation has proposed that people aged between 28 and 40 should be able to access £12,548 as a one-off payment
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The full state pension requires 35 years of contributions, while those with fewer years receive proportionally reduced payments.
The think tank suggested the funds could help young people get onto the property ladder, cover childcare expenses, or reduce student debt burdens.
Jamie Gollings of the 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 have put in."
However, financial experts have raised serious concerns about the proposal's implications for public finances.
According to the think tank, the scheme could cost the Treasury up to £7billion in its first year
| GETTYAngeline Ong, Senior Investments Analyst at IG, described it as "another classic buy now, pay later idea, taking from the future to fund the present, and that sends exactly the wrong message when the government is supposed to be encouraging people to save responsibly for retirement."
She warned that with public finances already under pressure, the funding would reduce capacity for services such as the NHS and welfare.
Former pensions minister Steve Webb, now a partner at consultants LCP, noted that government savings from reduced pension payments would not materialise for more than 25 years, while advances to younger workers could exceed £100bn in the interim.
He said the policy did "not feel like a well-targeted policy" likely to gain political support given most politicians' short-term horizons.
Currently, the full new state pension stands at £241.30 weekly | GETTYThe Department for Work and Pensions responded cautiously to the proposal, with a spokesman stating: "Unlike 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."
The department emphasised its commitment to helping people achieve milestones like homeownership through boosting housing supply and tackling living costs rather than early pension access.
Analysis suggests those taking the early payment could sacrifice significantly larger sums in retirement.
Based on annual increases of 2.5 per cent, a 28-year-old's state pension would be worth approximately £33,689 annually by the time they reach retirement age — more than double the £12,548 early withdrawal amount.