Although less famous than fiat, cryptocurrencies are beginning to gain ground in our daily lives. We can now use it to buy houses, coffee, clothes, electric cars… It could also be that cryptos help us build solid assets for a peaceful retirement. A recent study by Charles Schwab confirms this thesis.
Charles Schwab, cryptocurrencies as an alternative for retirement savings
Finance giant Charles Schwab has posted the results of an online survey of cryptocurrency investments in 401(k) accounts. It is called ” 2022 401(k) Participant Study – Gen Z/Millennials Focus “.
1,000 401(k) retirement plan savers, between the ages of 21 and 70 and actively working in a company with at least 25 employees, were surveyed by Logica Research.
Here is an excerpt from published results by Charles Schwab:
As we can see, more than 30% of Gen Z and millennial workers would favor investing in annuities and cryptocurrencies in their 401(k).
As for their current choice of investments:
- 47% of millennials surveyed confirmed the realization of investments in cryptocurrencies;
- 43% of Generation Z admit to doing the same;
- 33% of Gen X workers invest in these assets;
- 4% of baby boomers invest in it.
The same report highlights that cryptocurrencies are among the top 5 most popular retirement savings methods. Bitcoin, ethereum, dogecoin, etc., occupy the 2e position in the ranking of the most popular alternatives among Gen Z savers. While millennials place them in 3e position.
The United States concerned about the situation
bitcoin.com, who analyzed this Schwab report, highlighted an increase in interest in cryptocurrencies as a means of investing in the 401(k) accounts of those surveyed. If for the moment, they favor annuities at 39%, 32% of them see in cryptos another way to afford reliable income after retirement. As the results above suggest, millennials and Generation Z are the most likely to choose cryptocurrencies.
However, this penchant for crypto-assets is viewed with suspicion by the US Department of Labor. Last April, this institution raised concerns about the integration of bitcoin into 401(k) retirement accounts by Fidelity.
However, the advice of the US government has not stopped Generation Z and millennials from jumping on the cryptocurrency bandwagon. Charles Schwab’s survey confirms that they see no downside and are ahead of the curve when it comes to adopting these assets.
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