Almost half of Gen Z and Millennials are already invested in digital assets outside of their retirement funds, citing “inflation” as the biggest hurdle to early retirement.
Almost half of Gen Z and Millennials want crypto to become part of their 401(k) retirement plans, according to a survey by US asset manager Charles Schwab.
Asking participants what they would like to see added to their 401(k) retirement products, the company found that 46% of Gen Z and 45% of Millennials said they “wish” they could invest in cryptocurrency as Part of your retirement planning.
This should come as no surprise, as the survey also found that 43% of Gen Z and 47% of Millennials already invest in cryptocurrencies outside of their 401(k), indicating the group’s affinity for cryptocurrency could suggest. asset class.
The asset manager surveyed 1,100 401(k) retirement plan participants ages 21 to 70 to complete the 10-minute survey between April 4 and 19, 2022.
Survey participants had to have worked for a company with 25 or more employees and be current contributors to their company’s 401(k) plans.
Millennials generally refer to those born between the early 1980s and mid-1990s, and Generation Z generally refers to those born between the mid-to-late 1990s and early 2010s.
The results contrast sharply with Gen X and Boomers surveyed, those born between the mid-1940s and late 1970s, with just 31% and 11% respectively wanting to invest in crypto through their 401(k). ), and even less than current investors in the asset class.
Inflation was widely seen as the main obstacle to retirement.
However, a similar study by Investopedia in April found that only 28% of US-based millennials and 17% of Gen Z respondents expected to use crypto to support themselves in retirement.
Related: Roth IRA: The Ideal Long-Term Cryptocurrency Investment?
The asset manager does not currently offer cryptocurrency investments as part of its 401(k) retirement plans, although cryptocurrency-based retirement funds have been in the works since February 2019.
In April, Fidelity Investments laid out plans to open Bitcoin
Investment for ts 401(k) retirement savings account holders, with savers allowed to allocate up to 20% Bitcoin to their savings portfolio.
In Australia, pension fund provider Rest Super has been investigating a cryptocurrency offering as part of a diversified portfolio for its 1.9 million members since November 2021.
While most digital asset pension funds are offered in the form of Bitcoin or Ether
, a Northern Virginia county speculated a part of pensioners pension funds in a decentralized finance (DeFi) yield farming account in May. 2022, which was later approved in August 2022.
But things can go wrong. A Quebec pension fund has lost almost all of its $154.7 million that was heavily invested in the now-bankrupt cryptocurrency credit platform Celsius.
Controversies like this have divided US senators over the seriousness of the risks posed by 401(k) pension plans exposed to cryptocurrencies.
They include Senators Elizabeth Warren, Dick Durbin and Tina Smith, who previously argued that it is a “bridge too far” to expose Americans’ “hard-earned” pension funds to “cryptocurrency casinos.”
Update (October 26, 23:20 UTC): Updated to reflect that Rest Super is investigating a crypto offering for its members.