1 in 4 Brits Bet Their Pensions on Crypto, Ignoring the Risks

A recent survey conducted by UK insurance firm Aviva highlights a growing openness among British adults to incorporate cryptocurrency into their retirement planning. The poll, carried out by Censuswide and covering 2,000 UK adults between June 4 and 6, found that 27% of respondents would consider adding crypto to their pension portfolios, with over 40% of them citing the potential for higher returns as a primary motivation [1]. Notably, 23% of all participants said they would consider withdrawing part or all of their existing pensions to invest in digital assets, despite the limited availability of regulated crypto-linked pension products in the UK [2].

The UK pension market is vast, with over 80% of UK adults participating in pension schemes that collectively hold around £3.8 trillion in assets, equivalent to $5.12 trillion [1]. Even a small shift in allocation toward crypto could funnel significant capital into the cryptocurrency market. Aviva’s findings reveal that approximately one in five UK adults—around 11.6 million people—have either held or still hold crypto. Of these, two-thirds continue to own some form of digital assets. Younger investors, particularly those aged 25 to 34, are more active in this area, with nearly 20% reporting that they have already used pension funds to buy cryptocurrency [1].

Despite the interest, many concerns persist. Top risks cited by respondents include hacking and phishing attacks (41%), lack of regulation and consumer protection (37%), and price volatility (30%) [1]. These concerns underscore the need for more regulated and secure avenues for crypto investments within pension frameworks. Michele Golunska, Aviva’s managing director of wealth and advice, emphasized that while crypto’s appeal is understandable, traditional pensions offer unique advantages such as employer contributions and tax relief, which can significantly enhance long-term financial security [3].

The findings highlight a significant gap in the UK market compared to the United States, where President Donald Trump recently signed an executive order allowing 401(k) retirement plans to include Bitcoin and other cryptocurrencies, opening access to more than $9 trillion in assets [1]. This regulatory shift in the U.S. contrasts with the UK’s more cautious approach. Although the UK government has proposed a regulatory framework to bring crypto exchanges and dealers in line with traditional financial institutions, adoption remains slow. In a related development, 40% of surveyed UK crypto investors reported that their banks had either blocked or delayed a payment to a crypto provider, further complicating access [3].

As the UK pension system evolves, the survey underscores a growing interest in alternative investment vehicles. However, many respondents remain uncertain about the trade-offs involved. Nearly one-third admitted they don’t fully understand the benefits they may be giving up by cashing in their pensions, while 27% were unaware of the risks involved in crypto investments [3]. These findings suggest that while enthusiasm for crypto is rising, comprehensive education and clearer regulatory guidance are needed to support informed decision-making among UK retirees and prospective investors.

Source: [1] One in Four Brits Open to Crypto in Retirement Plans (https://finance.yahoo.com/news/one-four-brits-open-crypto-064711877.html) [2] Aviva Poll: Crypto Gains Ground in UK Retirement Plans (https://www.bitdegree.org/crypto/news/aviva-poll-cryptocurrency-gains-ground-in-uk-retirement-plans) [3] Quarter UK Open to Crypto in Retirement Funds (https://cointelegraph.com/news/quarter-uk-open-to-crypto-in-retirement-funds) [4] Aviva survey shows a quarter of people would consider using cryptocurrency as part of retirement plans (https://www.aviva.com/newsroom/news-releases/2025/08/Aviva-survey-shows-a-quarter-of-people-would-consider-using-cryptocurrency-as-part-of-retirement-plans/)