Retirement plans are a big picture for many people, with proper decisions taken before retirement, while several others pay no attention at all. Starting from what to invest in to how to invest, the plan flows seamlessly from one asset to another. Interestingly, with the rise of blockchain technology, cryptocurrency retirement plans are something that at least some populations around the world look for.
Yes, new research by the UK’s diversified insurer, Aviva, shows that a significant number of UK adults consider cryptocurrency as part of their retirement plans.
UK adults have shown interest in investing in crypto as a retirement plan
11.6 million people have taken the crypto leap in the UK
Approximately 21% of UK adults have invested in cryptocurrency at some point, which is equal to 11.6 million people. 14% of UK adults say they are currently holding multiple digital assets. The younger generation in the country has also upheld their interest in the cryptocurrency retirement plan, with 18% reportedly withdrawing money from their pension fund to allocate to crypto.
Besides the existing figures, some of the survey respondents have revealed they would consider incorporating cryptocurrency into their long-term financial planning. 23% of respondents are ready to invest their full or a portion of their pension fund! However, 13% of respondents are uncertain about investing in crypto as a retirement plan.
People expect a higher return
Holding cryptocurrency for the long term can generate profits, depending on market dynamics. The latest study highlights that most of those considering investing their pension funds into crypto are motivated by the expectation of higher future returns. At the same time, there are also investors induced by innovative technology, and those ready to diversify their portfolios.
But hacking and phishing blur enthusiasm
Crypto has a lot of profits to pour in, along with risk factors sprouting out from exploitations. Aviva’s study proves this point because crypto enthusiasts in the UK also shared concerns over security risks like phishing/hacking, lack of regulatory clarity, and volatile market trends.
One thing is very evident: holding cryptocurrency for long-term benefits has already been on the horizon, with several souls waiting for a potential price hike. Investing pension funds for a retirement plan is quite challenging with volatility playing drama. However, the enthusiasm for crypto investment needs to be appreciated, even though multiple risks spiral up besides price volatility, determining the role of cryptocurrency in retirement plans.
