Charles Schwab counts Crypto as the best retirement savings
On Tuesday, financial giant Charles Schwab published a study titled “401(k) Participant Study – Gen Z/Millennial Focus.” The report includes the findings of an annual online survey of 401(k) participants in the United States conducted by Logica Research for Schwab Retirement Plan Services Inc.
The survey was administered to 1,000,401(k) stakeholders aged 21 to 70 who are intentionally employed by companies with at least 25 employees. According to the report:
While the 401(k) remains the most popular retirement savings vehicle for today’s workers, Gen Z and millennial workers are more likely to invest in cryptocurrency, real estate, annuities and small businesses than older generations.
Furthermore, “and over four in ten Gen Z and millennial workers wish they could actually invest in retirement accounts and cryptocurrency in their 401(k),” according to the report.
According to the study, participants are more likely to save for retirement in a savings account than to invest outside of their 401(k). And this is made possible through the fact that a quarter invests in cryptocurrency.
When asked about their investment accounts, 43% of Gen Z participants said they invest in cryptocurrency, compared to 47% of millennials, 33% of Gen X and 4% of boomers.
According to the report, putting money into cryptocurrency is one of the top five methods for retirement money. It is the second most common way for Gen Z respondents to save for retirement.
When asked how they would invest in their 401(k) accounts, 39% said annuities, which provide permanent income after retirement, and 32% said cryptocurrency. Crypto was the top choice among Gen Z and millennial respondents.
Earlier this year, the US Department of Labor expressed concern about Americans looking to invest in bitcoin and other cryptocurrencies in their 401(k) accounts. In June, Treasury Secretary Janet Yellen stated that cryptocurrency is “very risky,” stressing that it is inappropriate for most retirement savers.
But in addition to the Labor Department’s warning, Fidelity Investments added bitcoin as a 401(k) plan option. A proposal to allow crypto investments in 401(k) plans has also been presented.
Meanwhile, the possibilities of crypto regulations also play a significant role when it comes to thinking about it as a long-term asset. The uncertainty surrounding the timing and form of the regulations makes investors and crypto users skeptical.
Many countries and governments around the world have shown their concerns over crypto-assets and called for regulations to control cryptocurrencies. While fraud, digital theft and similar cases play an important role in triggering the possibilities of crypto-regulations.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
