Crypto Seen as Viable Retirement Plan by Nearly 50 Percent Millennials, Gen Zs in US: Report

As per the survey, 43 percent of Gen Z and 47 percent of Millennials are already investing in cryptocurrencies outside of their 401(k) retirement plans.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 26 October 2022 14:39 IST

Crypto Seen as Viable Retirement Plan by Nearly 50 Percent Millennials, Gen Zs in US: Report

Photo Credit: Pixabay/ WorldSpectrum

The Millennial population estimates they require $1.8 million in their retirement savings

Highlights

Over four in ten Gen Z, Millennial workers prefer crypto investments
Gen Z estimates they require $1.4 million for retirement funds
Pandemic has pivoted younger people’s idea of investments

Around 45 percent Millennials and 46 percent of the Gen Z population are approaching cryptocurrencies as a retirement plan in the US. The findings have been published as part of a survey from the United States asset manager Charles Schwab. In the US, employers are liable for a 401(k) plan, which is an employer-sponsored, defined-contribution, personal pension account. As per the survey, 43 percent of Gen Z and 47 percent of Millennials are already investing in cryptocurrencies outside of their 401(k) retirement plans.

The change in the way younger generations is changing jobs and reconsidering financial priorities has been ushered in during the pandemic.

“They see an opportunity to reach their financial goals through diverse assets. Younger workers today are questioning traditional approaches. The 401(k), while still their primary retirement savings tool, is no longer viewed as their only path to retirement,” said Catherine Golladay, Head of Schwab Workplace Financial Services, commenting on the findings.

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People are, in fact, also looking to include virtual digital assets in their conventional pension plans, that are supported by licenced employers.

Over four in ten Gen Z and Millennial workers wish they could invest in annuities and cryptocurrency in their 401(k).

While the Millennial population estimates they require $1.8 million (roughly Rs. 14 crore) in their retirement savings, the Gen Z folks have projected the figure of $1.4 million (roughly Rs. 11 crore).

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For this big an amount, it is only natural that the younger workers are looking to diversify their investment portfolios.

Back in June, a report by [investment firm Alto had claimed that mutual funds have taken a back seat for young investors, crypto assets and stock market investments are competing neck and neck.

The same month, Capgemini's World Wealth Report had also said that wealthy global residents are not shying away from investing in crypto in order to diversify their portfolios.

In September last year, venture capitalist Chamath Palihapitiya had called Bitcoin a “modern day replacement for gold”.

A recent report by Blockware Intelligence claimed that BTC will see more adoption than smartphones and Internet in the coming days.

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Further reading: Cryptocurrency, Millennial, Gen Z, Virtual Digital Assets

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More