20% of Gen Z and Alpha See Crypto as a Retirement Alternative, Report Finds

A recent report from Bitget Research reveals that cryptocurrency is becoming an increasingly attractive option for younger generations when it comes to retirement planning. According to the findings, 20% of Gen Z and Gen Alpha are open to receiving pensions in cryptocurrency, highlighting a significant shift in how these groups approach financial planning.

The study, shared with Cointelegraph on January 16, also noted that over 40% of individuals in these generations have already invested in cryptocurrency, underscoring a "generational shift" in investment behavior. This growing interest in digital assets as a potential retirement vehicle reflects a broader trend of skepticism toward traditional financial systems.

Trust in Alternative Retirement Savings

The research also revealed that 78% of respondents from Gen Z and Gen Alpha trust "alternative retirement savings options" more than traditional pension funds. Many young investors are increasingly looking toward decentralized finance (DeFi) and blockchain-based solutions as a means of securing their financial future.

Bitget’s findings suggest that the younger generation's inclination toward crypto is driven by the desire for greater control, transparency, and flexibility—qualities they feel are lacking in traditional financial systems. The report noted that these groups are not only investing in cryptocurrencies but are also considering them as part of their long-term retirement plans.

Gracy Chen, CEO of Bitget, called the results a "wake-up call for the financial industry." She emphasized that younger generations are moving away from the traditional "one-size-fits-all" pension model and seeking modern solutions that cater to their needs.

Growing Crypto Adoption Among Younger Generations

With 40% of Gen Z and Gen Alpha having already invested in cryptocurrency as of January, the trend indicates a growing acceptance of digital assets among young people. Industry experts predict that crypto adoption will continue to rise in 2024, particularly among both institutional and retail investors. This increase is expected to be driven by clearer regulatory frameworks and rising cryptocurrency valuations.

The younger generation's shift toward crypto could also be attributed to a sense of disillusionment with traditional financial systems, which many feel do not offer the same level of accessibility, security, or innovation as blockchain-based solutions.

Barriers to Widespread Adoption

Despite the growing enthusiasm for cryptocurrency, the report highlights three major obstacles to broader adoption: price volatility, regulatory uncertainty, and cybersecurity risks. Cryptocurrency's price swings have long been a point of concern for investors, while the regulatory landscape remains in flux across many regions.

In addition, cybersecurity threats continue to plague the crypto industry, with hackers stealing a record $2.3 billion worth of digital assets in 2024—an alarming 40% increase compared to the previous year. Access control vulnerabilities, accounting for 81% of the total losses, remain a significant concern, underscoring the importance of robust security measures.

However, experts believe solutions like offchain transaction validation could dramatically reduce the risk of hacks and scams. According to Michael Pearl, Vice President of GTM Strategy at blockchain security company Cyvers, offchain validation could prevent 99% of crypto-related hacks by simulating and validating blockchain transactions in an offchain environment before they are executed on the blockchain.

Conclusion

The findings from Bitget’s research signal a major shift in how younger generations view retirement planning and investment. With 20% of Gen Z and Gen Alpha open to the idea of crypto pensions, and more than 40% already involved in crypto investing, digital assets are quickly becoming an integral part of their financial futures.

While challenges like volatility, regulation, and security persist, the desire for greater control, transparency, and flexibility will likely drive further adoption of cryptocurrency among younger people. The industry’s ability to address these obstacles while providing secure, compliant, and innovative solutions will be crucial in determining the future of crypto as a retirement alternative.