Survey shows: A quarter of UK adults are willing to invest in cryptocurrency for retirement planning

Recently, a survey commissioned by UK insurance company Aviva has revealed the potential impact of cryptocurrency in the UK retirement investment sector. More than a quarter of UK adults indicated they are willing to include cryptocurrency in their retirement portfolios, and 23% are even considering withdrawing existing pensions to invest in this high-risk asset. This trend not only reflects the younger generation's enthusiasm for digital assets but also highlights the challenges facing the traditional pension system. Despite the growing appeal of cryptocurrency, its volatility and lack of regulation still deter many. Based on Aviva's latest research, this article explores the causes of this phenomenon, associated risks, and the potential impact on the UK pension market.

Key Survey Findings: 27% of Adults Optimistic About Cryptocurrency’s Role in Retirement

According to a survey report released by Aviva on August 26, 2025, among a sample of 2,000 UK adults, 27% said they would be willing to include cryptocurrency as part of their retirement planning. This proportion, equivalent to about a quarter of respondents, indicates that cryptocurrency is gradually shifting from a speculative tool to a mainstream investment option. The survey was conducted by Censuswide from June 4 to 6, 2025, covering a broad range of age groups and income brackets.

Even more notably, 43% of respondents are attracted by the higher potential returns of cryptocurrency. Among them, 36% are excited about innovative technology and new opportunities, while 32% hope to achieve portfolio diversification through cryptocurrency. However, this interest is not without obstacles: 62% of respondents are concerned that if they exit traditional pensions to invest in cryptocurrency, they may lose pension benefits such as employer matching contributions and tax relief.

In addition, 23% of respondents said they would consider withdrawing part or all of their existing pension to invest in cryptocurrency. This could lead to a dramatic shift in the UK's vast pension fund market. More than four-fifths of UK adults hold pensions, with a total value of up to £3.8 trillion (about $5.12 trillion). If this proportion of funds flows into the crypto sector, it would inject massive capital into the digital asset market, further consolidating its position in the global financial system.

One Fifth of UK Adults Have Engaged with Cryptocurrency, Young People Especially Active

The survey also revealed the popularity of cryptocurrency in the UK: about 21% of respondents (equivalent to 11.6 million people) said they currently hold or have held cryptocurrency, with 14% still holding digital assets. This figure shows that cryptocurrency has shifted from a marginalized asset to a mainstream investment choice, especially prominent among younger groups.

Among those aged 25 to 34, 18% admitted to having withdrawn pensions to invest in cryptocurrency, making this group the largest contributor to the overall 8% of pension-withdrawing investors, totaling about 4.3 million people. This reflects the dissatisfaction of Generation Z and millennials with the traditional financial system, as they are more inclined to pursue high-return innovative investments rather than stable pension growth. Michele Golunska, Managing Director of Wealth and Advice at Aviva, pointed out: "It's easy to see why cryptocurrency has become an attractive investment option in recent years, but we must not forget the value of traditional pensions. They offer powerful benefits such as employer contributions and tax relief, which can truly improve long-term financial well-being."

Risk Concerns: Security and Regulation Are the Biggest Barriers

Despite the enthusiasm, UK adults remain cautious about the risks of cryptocurrency. The survey shows that 41% of respondents see security risks (such as hacking and phishing) as their primary concern, 37% worry about the lack of regulation and protection mechanisms, and 30% point to the extreme volatility of cryptocurrencies. These concerns are not unfounded: the cryptocurrency market is highly unstable, with prices potentially surging or plummeting in a short period, causing investors to lose everything.

Moreover, many people lack sufficient awareness of the risks of cashing out pensions. Nearly one-third of respondents are interested in cryptocurrency but admit they do not fully understand the benefits they might forgo by withdrawing pensions; 27% are not even aware of any risks involved. Golunska emphasized that consumers should take a balanced approach, prioritizing long-term financial security over short-term speculation.

From a broader perspective, the pace of cryptocurrency adoption by UK banks has slowed. Among the 2,000 cryptocurrency investors surveyed, 40% said their banks had blocked or delayed payments to crypto providers. This reflects the cautious attitude of traditional financial institutions toward digital assets.

Regulatory Environment: UK Advances Cautiously, US Takes the Lead

The UK has adopted a cautious approach to cryptocurrency regulation. In May 2025, the UK government announced a proposed framework that would subject cryptocurrency exchanges, dealers, and brokers to similar treatment as traditional financial (TradFi) companies, including strict compliance checks, transparency, and consumer protection measures. This framework aims to balance innovation and risk, and is expected to provide a safer channel for crypto investments in pension funds, but currently, UK adults have limited options to add cryptocurrency to retirement funds.

In contrast, the US has made faster progress. Earlier this month, US President Donald Trump signed an executive order allowing 401(k) retirement plans to include bitcoin and other cryptocurrencies. This opens the door to over $9 trillion in assets, exciting crypto investors but also raising concerns about serious risks such as market crashes and regulatory uncertainty. If the UK pension system wants to keep pace, similar reforms may be needed to prevent capital outflows to overseas markets.

Conclusion: Opportunities and Challenges Coexist, Balance Is Key

The Aviva survey shows that a quarter of UK adults are willing to invest in cryptocurrency for retirement, marking not only the rise of digital assets in retirement planning but also exposing potential vulnerabilities in the traditional financial system. The high return potential of cryptocurrency attracts millions of investors, especially young people, but its security, regulatory, and volatility risks cannot be ignored. If the UK's £3.8 trillion pension market can safely integrate crypto elements, it will inject new vitality into global digital finance; otherwise, it may amplify systemic risks.

As Golunska said, investors should weigh risks and returns to ensure that retirement planning is centered on long-term stability. In the future, as regulatory frameworks improve, cryptocurrency may become a routine option for UK pension investments, but only if education and protection mechanisms keep pace. UK adults need to proceed cautiously, avoid betting their future on high-risk assets, and seek professional guidance to achieve diversified and sustainable investment strategies.

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