Cryptocurrency ‘rewrites the retirement rulebook’ as workers shun pension contributions
PENSION contributions are protected by tax incentives and are often topped up by employers, making saving for retirement more accessible. However, many workers are now shunning their pensions in favor of cryptocurrency investment which could completely upend the financial planning industry.
Cryptocurrency a bigger draw than pensions
Recently, NerdWallet surveyed 2,000 nationally representative UK adults about their thoughts on pensions. The results were broken down by age, gender, region and whether respondents had a pension.
The results showed almost a third (31 percent) of young people aged between 18 to 24 years old would rather invest in cryptocurrency than save into a traditional workplace or personal pension. This is despite the fact that pensions can offer advantages such as pension tax relief and employer contributions, and the extremely high risks often associated with investing in cryptocurrency.
In March 2021, Dacxi, the digital asset exchange, announced it was intending to open up pension routes towards the end of 2021.
Speaking with Express.co.uk at the time, Katharine Wooler, the Managing Director of Dacxi said she anticipated high demand “from pension investors underwhelmed by current returns and keen to diversify a small proportion of their portfolio into reputable blue-chip cryptocurrencies such as Bitcoin, Ethereum and Litecoin.”
Read the full article here: https://www.express.co.uk/finance/personalfinance/1516405/cryptocurrency-retirement-workers-pension-contributions
