About 25% of adults in the UK are considering incorporating cryptocurrency into their retirement plans, which hints at a growing potential for crypto within the UK’s extensive pension market. British insurer Aviva shared on Tuesday that a recent poll conducted with 2,000 adults revealed that 27% would be open to using crypto in their retirement funds, and over 40% highlighted the allure of possible financial returns.
A survey from Kensus Wide, carried out from June 4 to 6, indicated that 23% of respondents would contemplate investing in crypto if it meant utilizing some or all of their current pensions. This shift toward crypto investments in UK retirement plans could lead to a significant influx of capital, particularly considering that over four million UK adults manage pension assets amounting to £3.8 trillion ($5.12 trillion).
Nevertheless, options for integrating crypto into retirement accounts remain somewhat limited in the UK. A recent vote in the US has allowed 401(k) plans to access over $9 trillion in assets, including Bitcoin (BTC) and other cryptocurrencies, following President Donald Trump’s executive order earlier this month.
A glimpse into crypto ownership in the UK
Aviva’s survey pointed out that approximately one in five participants, translating to around 11.6 million individuals, own some form of crypto. Notably, nearly 20% of UK adults aged 25 to 34 have reportedly withdrawn their pension funds to invest in cryptocurrency.
Concerns over cryptocurrency risks persist
Those surveyed expressed apprehensions about potential security threats, with 41% citing hacking and phishing as major concerns, followed closely by 37% worrying about the lack of regulations and protective measures in crypto. Additionally, 30% flagged the volatility associated with cryptocurrency as a significant issue.
Michele Golunska, managing director of Aviva’s wealth and advice, noted that it’s understandable why crypto has become so appealing to investors in recent years, though traditional pensions still offer considerable advantages. “We must not overlook the value of conventional pensions,” she remarked. “There are compelling benefits, like employer contributions and tax relief, that can dramatically impact long-term financial health.”
Awareness of risks is mixed among UK adults
The UK has been cautiously making strides in crypto regulation and, as of May, introduced measures treating crypto exchanges and dealers similarly to traditional financial institutions, with a focus on transparency and consumer protection. However, it seems that UK banks may be slow to embrace this change, as 40% of the 2,000 individuals surveyed reported that their banks had blocked or postponed payments to crypto providers.
