Crypto Is Redefining Retirement for Workers of All Ages, New Research Shows

Retirement consultancy firm Capitalize finds workers of all ages are adding crypto to their retirement portfolios -- however older workers at a slower, lower pace

Data from a new survey by retirement consulting company, Capitalize, show that cryptocurrencies are a growing part of post-career investing strategies for individuals across all age categories.

Key findings of the survey were that the average total needed to retire comfortably was $1.8 million, but those surveyed said they are only socking away $448 per month. That means what they're investing versus their retirement expectations will have a shortfall. Many of the survey respondents plan to use crypto investments to help close that gap.

Majority of Gen Z and millennials are betting on crypto

While past performance is not a guarantee of future results, Bitcoin for example has been dubbed the "best investment of the decade" producing 200% returns every year for the past 10 years on an annualized basis -- beating the next closest performing asset by a factor of 10 times. Younger investors seem to be willing to bet on those results, when you consider that 56% of Gen Zers and 54% of millennials surveyed are including cryptocurrencies in their retirement strategies. Many believe their longer time horizon for retirement affords them greater risk with crypto investments.

Younger workers plan to work well into retirement

For decades, the standard target age for retirement has been 65, but the research found that's increasing, especially among younger workers. One-third of younger respondents expect to work for another employer or start their own business once they hit traditional retirement age.

Just under 30% want to volunteer at retirement age, while an equal percentage say they want a part-time gig. One-third of millennials and Gen Zers plan to still work full-time when they reach retirement age; with 43% believing that social security benefits will not be able to support them in retirement.

The survey didn't specifically question if these extended work plans among the younger demographics are intended to avoid boredom or ensure financial security. The Capitalize study used data from a survey of 1,004 Americans located in the U.S. Respondents ranged in age from 18 to 70 years old with an average age of 34. Demographic breakdown by age was 13% Gen Zers, 34% millennials, 32% Gen Xers, and 21% were baby boomers. The study has a 3% margin of error on a 95% confidence interval.

Most Gen X and boomers support crypto investing for retirement

As for older employees, 63% of Gen Xers and boomers are also bullish on the idea of including cryptocurrencies within their retirement portfolios, though less than 20% on average are personally investing in those digital assets right now. When it comes to speculative investments, it's smart to never invest more than you can afford to lose, especially for those retiring in a few years.

All investors -- regardless of retirement targets -- need to do their own research and consult certified financial experts when allocating assets for their specific situations. Regardless of the type of retirement vehicle available, or whether you favor stocks, mutual funds, real estate, or crypto, it's never too late to start saving for your future.