Cryptocurrency Tempting Retirees—At What Cost?

A survey conducted by Aviva reveals that 27% of UK adults are open to including cryptocurrency in their retirement planning, aligning with broader trends indicating a growing interest in digital assets as part of long-term investment strategies. The findings, based on a survey of 2,000 UK adults conducted by Censuswide between June 4 and June 6, 2025, highlight a generational divide in attitudes toward crypto investment. Among those aged 25 to 34, 18% have already withdrawn money from their pensions to invest in cryptocurrency, equating to 8% of all surveyed adults who have taken similar actions [1].

The appeal of cryptocurrency in retirement planning is primarily driven by the perceived potential for higher returns, with 43% of those considering crypto as part of their retirement portfolio citing this as their primary motivation. Another 36% expressed interest in new technologies and innovation, while 32% saw diversification as a key factor [1]. Despite this enthusiasm, concerns remain significant. Security risks—such as hacking and phishing—were cited by 41% of respondents, while 37% expressed unease about the lack of regulation and consumer protection in the crypto space. Volatility in crypto trends was also a key concern for 30% of participants [3].

Notably, many respondents displayed a lack of awareness or understanding regarding the implications of redirecting retirement funds into crypto. Around 30% admitted they were unsure about the potential pension benefits they might forgo by cashing in their savings, and 27% were unaware of any associated risks. These figures underscore a knowledge gap about both the risks of crypto and the value of traditional pensions. Despite this, 82% of respondents still considered workplace or private pensions central to their retirement planning, with 62% expressing concerns about losing pension benefits if they chose to redirect funds [1].

The UK’s pension system, valued at over £3.8 trillion ($5.12 trillion), is currently limited in its capacity to incorporate crypto. However, the recent executive order by U.S. President Donald Trump permitting the inclusion of Bitcoin in 401(k) plans has drawn attention to the potential for similar developments in the UK. This regulatory shift in the U.S. is seen as a potential catalyst for broader institutional adoption elsewhere [3]. In the UK, progress on crypto regulation has been cautious, with a proposed framework introduced in May that seeks to align crypto exchanges, dealers, and agents with traditional financial regulations [3].

Michele Golunska, Aviva’s managing director of wealth and advice, emphasized the importance of weighing the risks and rewards of crypto against the long-term benefits of pensions, including employer contributions and tax relief. “While cryptocurrency has gained popularity, it’s important to recognize that pensions come with powerful advantages that can significantly impact your financial future,” she stated [1]. The survey further highlighted a lack of awareness among UK workers about pension-related benefits, with 22% unaware of tax relief and employer contributions and 12% not knowing whether their employer contributed at all [4].

Despite the growing interest in crypto, the findings suggest that many UK adults still view pensions as a cornerstone of retirement planning. However, the allure of crypto’s potential high returns continues to attract a segment of the population willing to take on greater risk. As the UK government and financial institutions consider the integration of digital assets into retirement savings, the balance between innovation and risk mitigation will remain a central topic of debate.

Source:

[1] 27% of adults would use cryptocurrency in retirement plans (https://workplacejournal.co.uk/2025/08/27-of-adults-would-use-cryptocurrency-in-retirement-plans-aviva/)

[2] Crypto Access in Retirement Plans: OnchainDataNerd Says Workers Face Delays, Binance Offers Instant Investing Option (https://blockchain.news/flashnews/crypto-access-in-retirement-plans-onchaindatanerd-says-workers-face-delays-binance-offers-instant-investing-option)

[3] 1 in 4 UK adults open to investing in crypto for retirement (https://cointelegraph.com/news/quarter-uk-open-to-crypto-in-retirement-funds)

[4] Quarter of savers would invest retirement savings in... (https://corporate-adviser.com/quarter-of-savers-would-invest-retirement-savings-in-cryptocurrencies/)