Nearly 50% of Generation Z and Millennials Want Crypto Exposure in 401(k) Plans: Survey

Young investors “want” to add crypto assets to their retirement savings accounts.

As the global financial ecosystem continues to see major changes, young investors in the United States are increasingly leaning towards crypto assets as an alternative investment option to add to their plans. their retirement.

50% of young people want crypto in their 401(k)

A recent survey by US wealth manager Charles Schwab, which polled approximately 1,100 401(k) retirement plan participants aged 21 to 70, revealed growing interest in the nascent digital asset industry.

About 45% of millennials and 46% of Gen Z revealed that they “want” to invest in crypto when asked what investment products they would like to see added to their retirement (401k) plans.

The survey also revealed that 43% of Gen Z and 47% of millennials have invested in crypto outside of their 401(k) accounts, which Charles Schwab pointed to as an indication of the relationship. group relation to the asset class.

This bubbly interest in cryptocurrencies among Generation Z and younger generations contrasts with the sentiments of older investors including Generation X and baby boomer respondents.

According to research results, only 31% of Gen X and 11% of respondents have a desire to add crypto assets to their 401(k) plan. Even more disappointing is the proportion of these older investors who already hold crypto asset positions, with 33% of Gen X admitting to having crypto and a meager 4% among boomers.

Strong Demand for Bitcoin 401(k)

The survey also noted that rising inflation remains the single biggest barrier to retirement for all investors as they continue to seek safer investment vehicles to combat economic conditions. harsh economy.

With more investors starting to take an interest in digital assets, institutions have begun to offer options for investors to include crypto as part of their retirement plans.

Earlier in April, one of the largest asset managers in the world, Fidelity Investments, revealed that it would allow 401(k) retirement savings account holders to invest in Bitcoin. The company explains that account holders will be allowed to spend up to 20% of their balance on Bitcoin.

Meanwhile, the survey comes as Schwab gets more involved in the digital asset industry. Last month, the asset manager was among investors backing the launch of the EDX Markets cryptocurrency trading platform.

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