On Tuesday, financial behemoth Charles Schwab published a study titled “401(k) Participant Study – Gen Z/Millennial Focus.” The report includes the findings of an annual online survey of 401(k) people involved in the United States performed by Logica Research for Schwab Retirement Plan Services Inc.
The survey was administered by 1,000 401(k) stakeholders aged 21 to 70 who are willfully employed by companies with at least 25 employees. According to the report:
Whereas the 401(k) continues to remain the most popular retirement savings vehicle for today’s workers, Gen Z and millennial employees are more likely than older generations to invest in cryptocurrency, real estate, annuities, and small businesses.
Furthermore, “and over four in ten Gen Z and millennial workers desire they can indeed invest in retirement accounts and cryptocurrency in their 401(k),” according to the report.
According to the study participants are more likely to save for superannuation in a savings account than investing outside of their 401(k). And this is made possible through a quarter investing in cryptocurrencies.
Once asked concerning their investment accounts, 43% of Gen Z participants said they invest in cryptocurrency, compared to 47% of millennials, 33% of Gen X, and 4% of boomers.
According to the report, putting money in cryptocurrency is one of the top five methodologies for retirement money. It is the 2nd most common way for Gen Z respondents to save for retirement.
When asked how they would like to invest in their 401(k) accounts, 39% said annuities, which provide permanent income after retirement, and 32% said cryptocurrency. Crypto was the top choice among Gen Z and millennial respondents.
Previously in the year, the US Labor Department voiced concern about Americans looking to invest in bitcoin and other cryptocurrencies in their 401(k) accounts. In June, Treasury Secretary Janet Yellen stated that cryptocurrency is “very risky,” emphasizing that it is inappropriate for most superannuation savers.
But besides the Labor Department’s warning, Fidelity Investments added bitcoin as a 401(k) plan option. A proposal to allow crypto investments in 401(k) plans has also been presented.
Meanwhile the possibilities of crypto regulations also play a considerable role when it comes to think of it as a long term asset. The uncertainties around the timing and form of the regulations makes investors and crypto users skeptical.
Many countries and authorities around the world have showcased their concerns over the crypto assets and asked to bring regulations to control cryptocurrencies. While Frauds, digital theft and rug pulls like instances play a major role in triggering the possibilities of crypto regulations.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.