A quarter of British adults polled said they’re open to crypto forming part of their retirement plans, suggesting that a larger share of the UK multitrillion-dollar pension fund market could be claimed by crypto.
Over a quarter of Brits said they’d add crypto to their retirement portfolios, while existing pension funds would even be withdrawn by 23% to invest in the space.
U.K. insurance company Aviva said on Tuesday that its poll of 2,000 U.K. adults found 27% were open to crypto in their retirement funds, with higher potential returns being the motivation for just over 40% of those open to crypto.
The survey, which was conducted by Censuswide from June 4-6, also found that 23% of all those polled said that part, or all, of their existing pension would be considered for withdrawal to invest in crypto.
Crypto investments in U.K. retirement plans could see significantly more capital flow into the space, with over four in five U.K. adults holding pensions worth a total of 3.8 trillion British pounds ($5.12 trillion).
Still, U.K. adults have limited options for adding crypto to their retirement funds.
The poll came as a new executive order was signed by U.S. President Donald Trump earlier this month, which permits U.S. 401(k) retirement plans to include Bitcoin and other cryptocurrencies, opening access to more than $9 trillion in assets.
One-Fifth of UK Adults Have Tried Crypto
Aviva said that around one in five surveyed, equivalent to about 11.6 million people, said they hold, or have held, crypto. About two-thirds said they still own crypto in some capacity.
More Read
Nearly one-fifth of U.K. adults aged between 25 and 34 said they had already withdrawn pension funds to invest in crypto.
Crypto Risks Remain a Concern for Brits
The respondents cited security risks, such as hacking and phishing attacks, and a lack of regulation and protection of crypto as the biggest risk concerns at 41% and 37% respectively, while crypto volatility was flagged as the third-biggest worry at 30%.
Aviva’s managing director of wealth and advice, Michele Golunska, said it’s easy to see why crypto has become an appealing investment option in recent years, but significant advantages are still offered by pensions.
“We mustn’t forget the value of the good old pension. It comes with some powerful benefits, like employer contributions and tax relief, that can make a real difference to your long-term financial wellbeing.”
Many UK Adults Acknowledge Crypto Risks
Nearly one in three of the respondents said they’re interested in crypto but acknowledged that they don’t fully understand the benefits that may be given up by cashing in their pensions, while 27% didn’t realize there were any risks involved.
The U.K. has cautiously progressed with crypto regulation, having unveiled a proposed framework in May that would see crypto exchanges, dealers, and agents treated similarly to TradFi firms, with strong compliance checks particularly focused on transparency and consumer protection.
U.K. banks appear to have slowed adoption, with 40% of 2,000 recently surveyed crypto investors saying that a payment to a crypto provider had either been blocked or delayed by their banks.
