A quarter of adults in the UK surveyed expressed interest in incorporating cryptocurrency into their retirement plans, indicating the potential for crypto to capture a larger portion of the country’s multitrillion-dollar pension market.
UK insurance firm Aviva reported on Tuesday that a survey involving 2,000 UK adults found that 27% are considering crypto for their retirement savings. Over 40% of those inclined to include crypto cited the prospect of higher returns as their motivation.
The June 4-6 survey, conducted by Censuswide, also revealed that 23% of respondents would consider cashing out part or all of their existing pensions to invest in crypto.
Incorporating crypto into UK retirement schemes could attract significantly more capital, given that over four in five UK adults have pensions valued at approximately £3.8 trillion ($5.12 trillion).
However, options for integrating crypto into retirement funds remain limited for UK adults.
This poll coincided with US President Donald Trump’s signing of an executive order earlier this month, allowing US 401(k) retirement plans to include Bitcoin (BTC) and other cryptocurrencies, thereby providing access to assets worth over $9 trillion.
Source: Cointelegraph
One-fifth of UK adults have tried crypto
According to Aviva, about 20% of those surveyed—approximately 11.6 million individuals—have owned or currently hold cryptocurrency. Roughly two-thirds of them still possess crypto investments.
Close to 20% of UK adults aged 25 to 34 reported that they had withdrawn pension funds to invest in cryptocurrency.
Concerns regarding crypto risks remain prevalent
Respondents identified security risks, including hacking and phishing attacks, as well as the lack of regulation and protection for cryptocurrencies, as their primary concerns, with 41% and 37% respectively highlighting these issues. Volatility in crypto was noted as the third-largest concern at 30%.
Related: Bitcoin 401(k)s excite crypto investors but pose serious risks
Michele Golunska, managing director of wealth and advice at Aviva, noted that while crypto has emerged as an appealing investment choice, traditional pensions still offer considerable advantages. “We mustn’t forget the value of the good old pension. It comes with powerful benefits, such as employer contributions and tax relief, which can significantly enhance your long-term financial health.”
A significant number of UK adults understand the risks
Nearly one in three respondents expressed interest in cryptocurrency but acknowledged that they do not fully grasp the potential benefits they might forfeit by cashing in their pensions, while 27% were unaware of the associated risks.
The UK is proceeding cautiously with crypto regulation, having introduced a proposed framework in May aimed at treating crypto exchanges, dealers, and agents similarly to traditional financial institutions, with a strong focus on compliance, transparency, and consumer protection.
UK banks, however, seem to be hindering progress, as 40% of 2,000 recently surveyed crypto investors noted that their banks either blocked or delayed payments to crypto providers.
Magazine: Older investors are risking everything for a crypto-funded retirement
