Nearly half of Gen Z and Millennials want crypto to be part of their 401(k) retirement plans, according to an October survey by US wealth manager Charles Schwab.
When respondents asked what they would like to see in their 401(k) retirement products, the company found that 46% of Gen Z and 45% of Millennials said they “wish” to see them as part of their retirement plans invest in cryptocurrencies.
It shouldn’t come as a surprise, as the survey also found that 43% of Gen Z and 47% of Millennials are already investing in cryptocurrencies outside of their 401(k), which could indicate the group’s affinity for the asset class.
The Wealth Manager surveyed 1,100 401(k) plan participants, ages 21 to 70, to complete the 10-minute survey, conducted between April 4 and April 19, 2022.
Respondents to the survey had to have worked for a company with 25 or more employees and be recent contributors to their company’s 401(k) plans.
Millennials generally refer to those born in the early 1980s to mid 1990s, with Gen Z generally born between the mid to late 1990s to early 2010s.
The results are in stark contrast to surveyed Gen X and Boomers — those born between the mid-1940s and late 1970s — with just 31% and 11% respectively wanting to invest in cryptocurrencies through their 401(k), and still less current investors in the asset class.
Inflation was widely regarded 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 believed they would use cryptocurrencies to sustain themselves in retirement.
Related: Roth IRAs: The Ideal Long-Term Cryptocurrency Investment?
The money manager does not currently offer cryptocurrency investments through its 401(k) retirement plans, although crypto-based retirement funds have been in the works since February 2019.
In April, Fidelity Investment reportedly put together plans to open Bitcoin investments to ts 401(k) retirement savings account holders, allowing savers to allocate up to 20% of Bitcoin (BTC) to their savings portfolio.
In Australia, Rest Super became the first pension fund to offer its 1.9 million members cryptocurrency allocations as part of a diversified portfolio in November 2021.
While most digital asset retirement funds are offered in the form of bitcoin or ether (ETH), one county in Northern Virginia speculated in May to allocate a portion of retirees’ retirement funds to a decentralized finance (DeFi) yield-farming account . 2022 – which was later approved in August 2022.
But things can also go wrong. A Quebec pension fund lost nearly all of its $154.7 million heavily invested in now-bankrupt cryptocurrency lending platform Celsius.
Controversies like this have divided US Senators over the seriousness of the risks associated with crypto-exposed 401(k) retirement plans.
Among them are Democratic Senators Elizabeth Warren, Dick Durbin, and Tina Smith, who have previously argued that exposing Americans’ “hard-earned” retirement funds to “cryptocurrency casinos” is a “bridge too far.”
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.