A quarter of British adults polled said they’re open to crypto forming part of their retirement plans, suggesting that crypto could claim a larger share of the UK’s multitrillion-dollar pension fund market.
UK insurance company Aviva said on Tuesday that its poll of 2,000 UK adults found 27% were open to crypto in their retirement funds, with just over 40% of those open to crypto saying they were motivated by the higher potential returns.
The survey, which was conducted by Censuswide June 4-6, also found that 23% of all those polled said they would consider withdrawing part, or all, of their existing pension to invest in crypto.
Crypto investments in UK retirement plans could see significantly more capital flow into the space, with over four in five UK adults holding pensions worth a total of 3.8 trillion British pounds ($5.12 trillion).
Still, UK adults have limited options for adding crypto to their retirement funds.
The poll came as US President Donald Trump signed an executive order earlier this month permitting US 401(k) retirement plans to include Bitcoin (BTC) and other cryptocurrencies, opening access to more than $9 trillion in assets.
Source: CointelegraphA fifth of UK adults already dabbled in crypto
Aviva said that around one in five surveyed, equivalent to about 11.6 million people, said they hold, or have held, crypto. About two-thirds said they still own crypto in some capacity.
Nearly one-fifth of UK adults aged between 25 and 34 said they had already withdrawn pension funds to invest in crypto.
Brits still concerned about crypto risks
The respondents cited security risks, such as hacking and phishing attacks, and lack of regulation and protection of crypto as the biggest risk concerns at 41% and 37% respectively, while crypto volatility was flagged as the third-biggest worry at 30%.
Related: Bitcoin 401(k)s thrill crypto investors but carry serious risks
Aviva’s managing director of wealth and advice, Michele Golunska, said it’s easy to see why crypto has become an appealing investment option in recent years, but pensions still offer significant advantages.
Many UK adults aware of the risks
Nearly one in three of the respondents said they’re interested in crypto but acknowledged that they don’t fully understand the benefits they may give up by cashing in their pensions, while 27% didn’t realize there were any risks involved.
The UK has cautiously progressed with crypto regulation, having unveiled a proposed framework in May that would see crypto exchanges, dealers, and agents treated similarly to TradFi firms, with strong compliance checks particularly focused on transparency and consumer protection.
UK banks appear to have slowed adoption, with 40% of 2,000 recently surveyed crypto investors saying that their banks had either blocked or delayed a payment to a crypto provider.
Magazine: Older investors are risking everything for a crypto-funded retirement
Source: https://cointelegraph.com/news/quarter-uk-open-to-crypto-in-retirement-funds?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
