New research has found an increasing number of Brits embracing cryptocurrency, with around a fifth of adults in the UK having already invested in crypto to some degree.
If you are retirement planning in Cheshire or the wider UK, over 25% of adults have said they would add crypto to their retirement portfolios.
The survey of 2,000 adults was conducted by insurer Aviva. It found that 23% of those asked said they were prepared to withdraw existing pension funds to invest in crypto. Over 40% believed crypto offered higher potential returns. At the time of writing, an estimated £3.8 trillion is held in pensions and crypto could see a sizable uptick in investment. However, the UK has thus far lagged behind the US where President Trump has authorised retirement plans to include Bitcoin.
It is important to be mindful of the risks associated with it, and many of those quizzed in the poll expressed concerns about security, hacking or inadequate regulatory control. Around 30% of respondents cited crypto volatility as a significant concern. The Government has sought to reassure investors that crypto is secure and transparent. In May, it unveiled a regulatory framework that introduced stringent compliance checks.
The lingering question is whether crypto will supplant pensions and offer higher returns to people in later life. Around a third of respondents said they were looking to spread their money across diverse assets. This is seen as a way of minimising risks and maximising exposure to growing markets. More cautious investors, however, may prefer to stick with trusted retirement savings strategies, which still enjoy the benefits of employer contributions, tax relief and reliable growth.
