A survey revealed that nearly half of Gen Z and Millennials want crypto to be in their 401(k) retirement plans. Gen Z is those who were born between the mid to late 1990s to the early 2010s and Millennials are referred to as those born in the 1980s to mid-1990s.
The United States asset manager Charles Schwab asked participants what they liked to see added to their 401(k) retirement products. Around 46% of Gen Z and 45% of Millennials wish they could invest in cryptocurrencies as part of their retirement planning. The survey stated that 43% of Gen Z and 47% of Millennials are investing in cryptocurrencies outside their 401(k) already. This suggests the group’s bias toward the emerging asset class.
About 1,100 401(k) retirement plan participants, aged 21 – 70, completed the 10-minute survey which was conducted between April 4 and April 9, 2022. To participate in the survey, individuals needed to have worked for a company with 25 or more employees and be current contributors to their company’s 401(k) plans. The results show a huge difference between the surveyed Gen X and Boomers, born anywhere between the mid-1940s to the late 1970s, with 31% and 11% respectively desiring to invest in cryptocurrencies via their 401(k). However, inflation was seen as a leading obstacle to retirement across the board. Investopedia, in a similar study in April, found only 28% of US-based Millennials and 17% of Gen Z’s surveyed expected to use cryptocurrency to support themselves in retirement.
It should be noted that the asset manager does not offer any cryptocurrency investments as part of their 401(k) retirement plans. Fidelity Investment put plans together in April to open up Bitcoin investment for its 401(k) retirement saving account holders. Savers would be allowed to set aside 20% of Bitcoin to their savings portfolio. Rest Super, in Australia, rose as the first retirement fund to offer cryptocurrency allocation as part of a diversified portfolio to its 1.9 million members in November 2021.