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Cryptocurrency Is a Top Retirement Savings Method – Featured Bitcoin News
A study published by financial giant Charles Schwab shows that cryptocurrency is a top method of retirement savings. “Gen Z and millennial workers are more likely to invest in cryptocurrency, real estate, annuities and small businesses than older generations.”
Crypto investments in 401(k) accounts
Financial giant Charles Schwab published a report titled “401(k) Participant Study – Gen Z/Millennial Focus” on Tuesday. The report contains the results of an annual online survey of US 401(k) participants conducted by Logica Research for Schwab Retirement Plan Services Inc.
A total of 1,000 401(k) plan participants aged 21 to 70, who are actively employed by companies with at least 25 employees, completed the survey. The report details:
While the 401(k) remains the best retirement savings vehicle for today’s workers overall, Gen Z and millennial workers are also more likely to invest in cryptocurrency, real estate, annuities and small businesses, unlike older generations.
Additionally, “More than 4 in 10 Gen Z and millennial workers wish they could invest in annuities and cryptocurrency in their 401(k),” the report adds.
As for how workers save for retirement, the report states that “Outside of the 401(k), participants are still more likely to save for retirement in a savings account than to invest, although a quarter invest in cryptocurrencies.”
When asked about their current investments, 43% of Gen Z respondents said they invest in crypto, compared to 47% of millennial respondents, 33% of Gen X respondents and 4% of boomers.
Investing in cryptocurrency is one of the five best methods of retirement savings, the report further shows. It is the second most popular method of retirement savings for Gen Z respondents and the third most popular for millennial respondents.
When it comes to ways respondents wish they could invest in their 401(k) accounts, 39% said annuities, which provide guaranteed income after they retire, while 32% said cryptocurrency. Gen Z and millennial respondents chose crypto as their top answer.
The US Department of Labor expressed concern about Americans investing in bitcoin and other cryptocurrencies in their 401(k) accounts earlier this year. Treasury Secretary Janet Yellen also said in June that cryptos are “very risky,” stressing that they are unsuitable for most retirement savers.
Despite the Labor Department’s warning, Fidelity Investments made bitcoin an option for 401(k) plans. A bill has also been introduced to allow crypto investments in 401(k) plans.
What do you think of this Charles Schwab study on how people save for retirement? Let us know in the comments section below.
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