Crypto a Viable Retirement Plan for Most Millennials, Gen Zs in US: Report

Around 45 percent Millennials and 46 percent of the Gen Z population are approaching cryptocurrencies as a retirement plan in the US. The findings have been published as part of a survey from the United States asset manager Charles Schwab. In the US, employers are liable for a 401(k) plan, which is an employer-sponsored, defined-contribution, personal pension account. As per the survey, 43 percent of Gen Z and 47 percent of Millennials are already investing in cryptocurrencies outside of their 401(k) retirement plans.

The change in the way younger generations is changing jobs and reconsidering financial priorities has been ushered in during the pandemic.

“They see an opportunity to reach their financial goals through diverse assets. Younger workers today are questioning traditional approaches. The 401(k), while still their primary retirement savings tool, is no longer viewed as their only path to retirement,” said Catherine Golladay, Head of Schwab Workplace Financial Services, commenting on the findings.

People are, in fact, also looking to include virtual digital assets in their conventional pension plans, that are supported by licenced employers.

Over four in ten Gen Z and Millennial workers wish they could invest in annuities and cryptocurrency in their 401(k).

While the Millennial population estimates they require $1.8 million (roughly Rs. 14 crore) in their retirement savings, the Gen Z folks have projected the figure of $1.4 million (roughly Rs. 11 crore).

For this big an amount, it is only natural that the younger workers are looking to diversify their investment portfolios.

Back in June, a report by [investment firm Alto had claimed that mutual funds have taken a back seat for young investors, crypto assets and stock market investments are competing neck and neck.

The same month, Capgemini's World Wealth Report had also said that wealthy global residents are not shying away from investing in crypto in order to diversify their portfolios.

In September last year, venture capitalist Chamath Palihapitiya had called Bitcoin a “modern day replacement for gold”.

A recent report by Blockware Intelligence claimed that BTC will see more adoption than smartphones and Internet in the coming days.

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