British Adults Show Interest in Crypto for Retirement Plans Amid Regulatory Concerns

According to Cointelegraph, a recent survey conducted by UK insurance company Aviva reveals that approximately 27% of British adults are open to incorporating cryptocurrency into their retirement plans. This interest suggests a potential shift in the UK's multitrillion-dollar pension fund market towards digital assets. The poll, which surveyed 2,000 UK adults, indicates that over 40% of those open to crypto investments are motivated by the prospect of higher returns. Additionally, 23% of respondents expressed willingness to withdraw part or all of their existing pension to invest in cryptocurrencies. Despite the growing interest, UK adults face limited options for integrating crypto into their retirement funds. This development coincides with U.S. President Donald Trump signing an executive order earlier this month, allowing U.S. 401(k) retirement plans to include Bitcoin and other cryptocurrencies, thereby granting access to over $9 trillion in assets. The survey also highlights that around one in five UK adults, equivalent to approximately 11.6 million people, have engaged with crypto investments, with two-thirds still holding digital assets. Notably, nearly one-fifth of adults aged 25 to 34 have already withdrawn pension funds to invest in crypto, contributing significantly to the 8% of all respondents who reported doing the same. Despite the enthusiasm for crypto investments, concerns persist among Brits regarding the risks associated with digital assets. Security issues such as hacking and phishing attacks, along with a lack of regulation and protection, are cited as major concerns by 41% and 37% of respondents, respectively. Crypto volatility is also flagged as a significant worry by 30% of those surveyed. Michele Golunska, Aviva's managing director of wealth and advice, acknowledges the appeal of crypto investments but emphasizes the enduring benefits of traditional pensions, including employer contributions and tax relief. The survey further reveals that nearly one-third of respondents are interested in crypto but admit to not fully understanding the potential benefits they might forgo by cashing in their pensions. Meanwhile, 27% are unaware of any risks involved in crypto investments. The UK has been cautiously advancing its crypto regulation, proposing a framework in May that aims to treat crypto exchanges, dealers, and agents similarly to traditional financial firms, with stringent compliance checks focused on transparency and consumer protection. However, UK banks appear to be slowing adoption, as 40% of recently surveyed crypto investors reported having their bank block or delay payments to crypto providers.