Around a quarter of British adults have expressed openness to including cryptocurrency in their retirement portfolios, a move that could potentially shift a significant portion of the UK’s expansive pension fund market towards digital assets.
According to a survey conducted by UK insurance giant Aviva, 27% of the 2,000 UK adults polled showed willingness to incorporate crypto into their retirement funds. Of those open to crypto adoption, more than 40% cited the prospect of higher returns as a compelling motivator.
The Censuswide poll, conducted between June 4 and 6, also highlighted that 23% of respondents would consider withdrawing some or all of their current pension savings to invest in cryptocurrencies. This trend suggests a growing interest in crypto investments among pension holders, who collectively manage assets worth a staggering 3.8 trillion British pounds ($5.12 trillion).
Despite this burgeoning interest, options for UK adults to integrate cryptocurrencies into their retirement plans remain limited.
The development in the UK follows a notable move by the United States, where President Donald Trump recently signed an executive order allowing 401(k) retirement plans to encompass Bitcoin (BTC) and other digital currencies, thereby extending access to over $9 trillion in assets.
A fifth of UK adults already dabbled in crypto
Aviva revealed that about 20% of those surveyed, translating to approximately 11.6 million individuals, have either previously held or currently hold cryptocurrencies. Of this group, around two-thirds continue to maintain some form of crypto holdings.
Interestingly, nearly 20% of UK adults aged between 25 and 34 have already tapped into their pension funds for crypto investments, contributing significantly to the 8% overall who reported such actions.
Brits still concerned about crypto risks
Security threats, including hacking and phishing attacks, were identified as the top concerns by 41% of participants, followed by apprehensions over the lack of regulation and protection at 37%. The inherent volatility of cryptocurrencies was the third most cited risk, worrying 30% of respondents.
Michele Golunska, Aviva’s managing director of wealth and advice, remarked on the allure of cryptocurrencies in recent years while emphasizing the enduring benefits of traditional pensions. “We mustn’t forget the value of the good old pension. It comes with some powerful benefits, like employer contributions and tax relief, that can make a real difference to your long-term financial wellbeing,” Golunska advised.
Many UK adults aware of the risks
While nearly a third of respondents expressed interest in cryptocurrencies, they also acknowledged a lack of full understanding regarding the potential benefits they might forgo by liquidating their pensions. Notably, 27% remained unaware of any associated risks.
The UK is cautiously advancing its regulatory framework for crypto, having outlined a proposed structure in May aimed at regulating crypto exchanges and service providers akin to traditional financial institutions, with a focus on transparency and consumer protection.
However, adoption has been met with some resistance from UK banks, as 40% of recently surveyed crypto investors reported experiencing blocked or delayed payments to crypto providers by their banks.
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