A Quarter of UK Investors Consider Crypto for Pensions Despite Risks

Around one in four UK adults have expressed openness to including cryptocurrency in their retirement savings, signaling growing interest in digital assets as part of long-term financial planning. A recent Aviva survey of 2,000 UK adults, conducted by Censuswide between June 4 and 6, found that 27% were open to having crypto in their retirement portfolios, with 41% of those citing the allure of higher potential returns compared to traditional pension assets [1]. Additionally, 23% of respondents would consider withdrawing part or all of their existing pensions to invest directly in cryptocurrency [2]. With over 80% of UK adults participating in pensions totaling £3.8 trillion ($5.12 trillion) in value, even small shifts in allocation could significantly impact the crypto market [3].

Approximately 11.6 million UK adults have either currently or previously held cryptocurrency, according to the survey [4]. Notably, the younger demographic—those aged 25 to 34—showed a stronger inclination to withdraw pension funds for crypto investments, with nearly 20% in this group reporting such actions [5]. This trend highlights a generational shift in investment preferences, with younger investors leaning toward alternative assets despite the limited availability of regulated pension vehicles for crypto.

However, the survey also revealed widespread concerns about the risks associated with crypto. The top concerns included security threats such as hacking and phishing (41%), lack of regulation and consumer protection (37%), and volatility (30%) [6]. Aviva’s managing director of wealth and advice, Michele Golunska, emphasized that while crypto’s appeal is understandable, traditional pensions still offer distinct advantages, such as employer contributions and tax relief, which can enhance long-term financial security [7].

Despite the interest, the UK lags behind the US in integrating crypto into mainstream retirement plans. In the US, President Donald Trump recently signed an executive order allowing 401(k) plans to include Bitcoin and other cryptocurrencies, opening access to over $9 trillion in assets [8]. By contrast, the UK has yet to introduce regulated pension products that accommodate crypto investments, leaving many Brits to manage their crypto holdings independently through platforms like Binance or Coinbase.

UK regulators have taken a cautious approach, proposing a framework in May 2025 to treat crypto exchanges, dealers, and agents similarly to traditional financial institutions. This move aims to enhance transparency and consumer protection but has not yet led to widespread adoption of crypto-linked retirement options. In fact, a recent survey found that 40% of UK crypto investors had experienced bank-related obstacles, such as delayed or blocked payments to crypto providers [9]. These challenges underscore the need for clearer guidelines and broader institutional support for crypto investments in retirement planning.

The survey further revealed gaps in financial literacy, with 30% of respondents expressing interest in crypto but lacking a full understanding of what they might be sacrificing by cashing in their pensions [10]. Meanwhile, 27% were unaware of the associated risks [11]. These findings highlight the importance of consumer education and balanced financial planning, particularly given the speculative nature of crypto assets compared to the more predictable growth of traditional pension funds.

Source:

[1] Cointelegraph

[2] Yahoo Finance

[3] Aviva

[4] Cointelegraph

[5] Yahoo Finance

[6] Aviva

[7] Aviva

[8] Cointelegraph

[9] Cointelegraph

[10] Aviva

[11] Aviva