A recent study conducted by Swiss Fintech company Creologix concluded that most millennials, those born between 1981 and 1996, are not saving for retirement, but increasingly buying cryptocurrencies for their future financial security, reports Insidebitcoins.
This supports a US National Institute on Retirement Security report published earlier this year which concluded that “95% of millennials are not saving adequately for retirement”. Students and young people are increasingly shunning banks with new opportunities to invest in retirement solutions powered by blockchain technology or AI.
Millennials are looking to have more control over their savings, says ThinkAdvisor, suggesting that blockchain will turn the financial industry into a financial community.
“The need for trusted, yet affordable financial advice and information has never been greater. However, retirement savers are often left out of decision making, and they may feel inadequately addressed or disenfranchised,” it said. It adds that the global community of retirement savers will not only benefit from automation, but from an unprecedented level of visibility, access, and involvement.
The recent Creologix report also shows that 21.2% of college students use their financial aid money to buy virtual currencies. Charles Hodge, Investment Services Consultant at Milliman, suggests that such funds might be better invested elsewhere. He says, “At this time, Bitcoin and other currencies are not appropriate for retirement sponsors.”
Rick Pendykoski, the founder of Self-Directed Retirement Plans LLC, agrees with this view, and believes that Bitcoin should not play a significant role in a retirement plan:
“Investing in Bitcoin works best if you already have a healthy mix of short-term and long-term assets in your portfolio, and are investing for retirement in an individual retirement account (IRA) or other tax-advantaged plans.”
Auctus describes itself as “the world’s first retirement plan platform with traditional and cryptocurrency assets, powered by smart contracts & robo advisory”. The website suggests that its platform brings retirement savers from around the world together.
Raphael Vantroost, CEO of Auctus, considers that the reason for millennials moving towards crypto investment for retirement is mainly due to their faith in new technology, as for them its an everyday part of their lives:
“Bitcoin and cryptocurrencies serve as some of the first investments for many millennials. This could be because the younger generation is tech-savvy, but it could also be due to a lack of alternatives.”
Retirement savings using cryptocurrency is on the rise. BitcoinIRA has processed USD 300 million in the last 12 months.
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