A Quarter of UK Investors Eye Crypto for Pensions Amid Risk and Regulation Debates

Around a quarter of UK adults are showing openness to including cryptocurrencies in their retirement savings, according to a recent survey conducted by Aviva. The study, which involved 2,000 UK adults, revealed that 27% expressed a willingness to incorporate digital assets into their pension portfolios, with over 40% of that group citing the potential for higher returns as a primary motivator. This trend suggests a growing appetite for alternative investment avenues in the UK's pension market, which manages around £3.8 trillion ($5.12 trillion) in assets [1].

The survey also found that 23% of respondents would consider withdrawing part or all of their existing pensions to invest directly in crypto. While such a move could inject substantial capital into the crypto market, the UK currently offers limited regulated options for crypto-linked pension products. Most UK pensions do not allow direct holdings in digital assets, requiring individuals to withdraw funds and invest independently via exchanges [2].

Approximately one-fifth of UK adults, or around 11.6 million people, have held crypto at some point, with two-thirds still owning digital assets. Among them, younger investors aged 25–34 are particularly active, with nearly 20% having already withdrawn pension funds to buy crypto. This highlights a generational divide in investment behavior, as younger investors are more inclined to take on the risks associated with crypto [1].

Despite the growing interest, concerns remain about the risks of crypto investment. The top concerns cited by respondents include security threats such as hacking and phishing attacks (41%), lack of regulation and consumer protection (37%), and price volatility (30%). Many UK adults are also unaware of the potential trade-offs they might face by cashing in their pensions, with one-third admitting they do not fully understand what benefits they may be giving up, such as employer contributions and tax relief [1].

The UK government is taking steps to address these concerns by introducing stricter reporting requirements for crypto transactions starting in January 2026. This is aimed at enhancing oversight, ensuring tax compliance, and improving consumer protection. Meanwhile, the US has moved ahead by allowing 401(k) retirement plans to include crypto, opening access to over $9 trillion in assets. In contrast, UK banks have been slower in supporting crypto transactions, with 40% of surveyed crypto investors reporting that their banks blocked or delayed payments to crypto providers [3].

Source: [1] 1 in 4 UK adults open to investing in crypto for retirement (https://cointelegraph.com/news/quarter-uk-open-to-crypto-in-retirement-funds) [2] One in Four Brits Open to Crypto in Retirement Plans, New ... (https://finance.yahoo.com/news/one-four-brits-open-crypto-064711877.html) [3] UK adults eye crypto for retirement savings (https://www.mitrade.com/insights/news/live-news/article-3-1072787-20250827)