Charles Schwab: Cryptocurrency Is a Top Method for Retirement Savings
A study published by financial giant Charles Schwab shows that cryptocurrency is a top method for retirement savings. “Gen Z and millennial workers are more likely to also invest in cryptocurrency, real estate, annuities, and small businesses, unlike older generations.” Crypto Investments in 401(k) Accounts
Financial giant Charles Schwab published a report titled “401(k) Participant Study – Gen Z/Millennial Focus” Tuesday. The report features the results of an annual online survey of U.S. 401(k) participants conducted by Logica Research for Schwab Retirement Plan Services Inc.
A total of 1,000 401(k) plan participants aged between 21 and 70, who are actively employed by companies with at least 25 employees, completed the survey. The report details: While the 401(k) remains the top retirement savings vehicle for today’s workers overall, Gen Z and millennial workers are more likely to also invest in cryptocurrency, real estate, annuities, and small businesses, unlike older generations.
In addition, “More than 4 in 10 Gen Z and millennial workers wish they could invest in annuities and cryptocurrency in their 401(k),” the report adds.
Regarding how workers save for retirement, the report states that “Outside of their 401(k), participants are still more likely to be saving for retirement in a savings account than investing, although a quarter are investing in cryptocurrencies.”
When asked about their current investments, 43% of Gen Z respondents said they invest in crypto, compared to 47% of millennial respondents, 33% of Gen X respondents, and 4% of boomers.
Investing in cryptocurrency is one of the top five methods for retirement savings, the report further shows. It is the second most popular method for retirement savings for Gen Z respondents and the third most popular for millennial respondents. Top methods for investing/saving for retirement. Source: Charles Schwab
Regarding ways respondents wish they could invest in their 401(k) accounts, 39% said annuities, which offer guaranteed income after they retire, while 32% said cryptocurrency. Gen Z and millennial respondents picked crypto as their top answer. Ways respondents wish they could invest in 401(k). Source: Charles Schwab
The U.S. Labor Department expressed concerns about Americans investing in bitcoin and other cryptocurrencies in their 401(k) accounts earlier this year. Treasury Secretary Janet Yellen also said in June that crypto is “very risky,” emphasizing that they are unsuitable for most retirement savers.
Despite the Labor Department’s warning, Fidelity Investments made bitcoin an option for 401(k) plans. A bill has also been introduced to allow crypto investments in 401(k) plans. Tags in this story 401(k) bitcoin, 401K crypto, 401k cryptocurrency, Boomers, Charles Schwab, Charles Schwab 401(k), Charles Schwab crypto, Charles Schwab cryptocurrency, Charles Schwab retirement savings, Gen X, Gen Z, Millennials
What do you think about this Charles Schwab study of how people save for retirement? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Study Finds Nearly 60% of Hong Kong and Singapore"s Super Rich Have Invested in Digital Assets FEATURED | 3 mins ago Mad Money"s Jim Cramer Apologizes for Being Wrong About Facebook Parent Meta After Stock Plunges FEATURED | 7 hours ago
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