Would you take £12.5k now to access your state pension earlier?

[AllaMova]

The Government are apparently considering allowing people under the age of 40 to take a £12.5k lump sum in exchange for being able to access their state pension a year later. You’d need at least ten years of national insurance contributions in order to qualify, if it goes ahead.

Would you take this?

I think I would - I could stick it in a S&S ISA, in order for it to grow over time. I think it’s a pretty good idea, especially for those who are looking to buy a house.

https://www.theguardian.com/commentisfree/2026/jun/09/young-people-money-citizens-advance-generations-older-people

God yes, for a couple we could invest one and more than make up for the missing years for both of you. Then would use 1 to reduce mortgage.

I would take it, being able to pay off some debt now would be life changing. And then not paying that debt would mean I could put more money into my work pension which with employer contributions will be more than my state pension anyway.
However I can see it would be easy to fritter it away and leave people in the lurch later in life

It wasn't a substantial discount at the time! I bought my 1st house with the maximum mortgage I could get at the time and paid 10% deposit which I had saved from my teachers salary. That 2 bedroom terraced house cost £11, 000, which was the market value at the time.

It's not a bad idea for people in certain circumstances. For example folk who are likely to get a good inheritance. But even that's not guaranteed with care home fees for the elderly.

In my area there was a lot of housing stock sold at very low prices. This has an impact on house prices.
Plus social housing, which has an impact on house prices and market rents.
Then Right to Buy.

Housing was very much cheaper.

It wasn't a discount just normal house prices. My mum bought a 3 bed terrace in 1986 that was 17500 which was a normal price

I bought a 2 bed flat that was only a couple of years old in London 1993, cost me £33k so £20k a decade early in probably a cheaper place isn't discounted

Oh this again!

What was average house price, what was a average salary?

Houses were many times more affordable. There wasn't a discount, they were just cheap.

Well done to you for buying a house when it was cheap to do so.

Or those who aren't likely to live to pension age

Yes it was cheaper but salaries were lower.

Which discount scheme was that?

Aaaarghhhh...! It is simple maths.

Houses were more affordable.

In my area in 1980, average house price was about 4x average salary.
In my area in 2026, average house price is about 10x average salary.

House are MUCH less affordable now.

Ok. My husband and I bought a house in 1987 for £27.500. That was the top of our budget. It was 3 times his plus 1 times mine.

The same house, two doors down, was put up for sale on Friday for OO £270,000

My son and his fiancee were thinking of buying it. 3 times his salary and 1 times hers is £280,000.

Pretty much the same really.

Academic now because they went on holiday on Saturday and the house was sold yesterday.

Why do people who bought houses then pretend they don't understand?

Housing was cheaper then than now.

It is like claiming the earth is flat to try to argue otherwise.

Of course I would. I could put it in an ISA and then I'd have the freedom to retire a year early on it, if I wanted to. But this scheme would only work if people were financially responsible, and in the main they aren't.

What have the Tories done? Reform will make it worse as their only priority will be rich people. The Greens are likely to crash the economy.

£280,000 divided by four would be close to double national average, so that house is nearly 8x average salary.

Buying houses is easy for higher earners, yes. This is also not new information.

Same house as we bought when we were 23 and 25.

I'd be tempted. None of us are guaranteed to live that long, so it could be the only state pension I ever get, and I'd feel confident enough in my own ability to invest it so I got the benefit.

The flexibility would also appeal. The option would be there for me to spread it more thinly and retire earlier than planned with the proceeds of the invested sum.

So what?

I do agree it's harder now but it's swings and roundabouts. We were paying 15% interest at one point.

I was going to continue to engage with you but it seems your manners are as non existant as your ability to buy a house.

Absolutely. I’m working on the assumption there wont be a state pension by the time I get there, so it if I can guarantee some now that would be amazing. And given my plans not to rely on it, I would be willing to push back receiving it for years in exchange for cash now!

Nobody is saying it wasn't cheaper. We are merely asking about these " discounts" a PP said people got in the 80s

Oh this also always gets trotted out, but also misses the point. It is boring having to do basic school maths.

Nothing bad will happen to you if you just accept mathematical facts. Houses were more affordable. There's no debate about it.

Arithmetic.