27% of adults would use cryptocurrency in retirement plans – Aviva

Research from Aviva found that 27% said they would consider investing in cryptocurrency as part of their retirement planning. 

Among adults aged 25 to 34, 18% said they had already withdrawn money from their pension to invest in crypto. 

This added up to 8% of all adults, or 4.3 million people, who had done the same.

Data also found that just over one in five (21%) UK adults had invested in cryptocurrency, with 14% saying they were currently holding digital assets. 

23% said they would think about withdrawing part or all of their pension to do this, while 13% were unsure.

Most people thinking about using their pension for crypto, 43%, were attracted by the chance of higher returns. 

36% said they liked new technology and innovation, and 32% wanted to diversify their investment portfolio.

There were also concerns, with 41% mentioning security risks like hacking or phishing. 

37% felt uneasy about the lack of regulation and protection, while 30% pointed to volatility in crypto trends.

30% were interested in crypto but said they did not understand the pension benefits they might be giving up by cashing in their pension. 

27% did not realise there are any risks involved.

Pensions still played a big part in retirement planning, as 82% invested in a workplace or private pension. 

62% said they would be concerned about losing pension benefits if they opted out to invest in crypto. 

22% were unaware of tax relief and employer contributions, and 12% did not know their employer contributed at all.

Michele Golunska, managing director of wealth and advice at Aviva, said: “There are lots of different investment opportunities out there, and it’s easy to see why cryptocurrency has become so popular in recent years. 

“But 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. 

“It’s important to weigh up the risks and rewards carefully and make sure your retirement savings are working as hard as they can for you.”