Cryptos are playing an increasing role in retirement planning

Global poll shows that a significant share of Gen X and Boomer investors already own or are intending to buy cryptocurrencies

Cryptos are playing an increasing role in retirement planning
Steve Randall

The growing part that cryptocurrencies will play in the world is not lost on millions of seasoned investors, who may include cryptos in retirement plans.

While digital assets may be assumed to be the domain of younger, tech-natives, a new global survey has found that half of Gen X and Boomer respondents already own cryptos or plan to do so before the end of 2022.

The poll was conducted by financial advisory deVere Group, a firm with US$12 billion under advisement, and comes as Bitcoin and other cryptos such as Ethereum dipped this week due to inflation and policies to try to tackle it.

deVere Group CEO Nigel Green says that older generations are increasingly aware of the potential of digital assets.

“Baby boomers and Gen X too are becoming ever more aware of the intrinsic value of digital, global, borderless, tamper-proof and unconfiscatable currencies in an increasingly tech-driven and uncertain world,” he said. “These older generations are starting to acknowledge that crypto is the future of finance and they don’t want to miss out.”

Green noted the increased participation of institutional investors in the digital assets markets.

Retirement planning

Green believes that cryptos will play a larger role in retirement planning strategy, even among older investors.

“Why? Because not only is Bitcoin already the best-performing asset of the decade, it will, due to its fixed supply, only continue to appreciate over the long-term,” he said. “In addition, crypto exposure can typically deliver a legitimate diversification tool – which is how investors can seize opportunities and mitigate risk, especially during periods of higher volatility.”

However, although the advisor has long been a crypto bull, Green adds a note of caution when discussing cryptocurrencies.

“As this year has proven again, the crypto market remains known for its volatility.  Therefore, retirees or those on the cusp of retirement need to bear this in mind and not over-commit, as this could put the wider retirement strategy in jeopardy,” he warned. “As ever, the best way to benefit from the huge potential of crypto is to seek professional advice.”