Growing Interest in Cryptocurrency Within Retirement Accounts
Recent data from NerdWallet reveals that about 10% of U.S. adults holding retirement accounts have allocated some portion to cryptocurrency. This interest is even more pronounced among younger investors, with 18% of millennials and 14% of Gen Z reporting crypto holdings in their retirement portfolios.
Bitcoin, the largest cryptocurrency by market value, has nearly doubled over the past year, trading around $115,600 as of September 2025. This performance has increased crypto’s appeal as a potential retirement asset.
Access to Crypto in Retirement Portfolios Expands
Investors can now integrate cryptocurrency into retirement savings more easily than before. Firms like Fidelity offer direct crypto investments within Individual Retirement Accounts (IRAs), while Charles Schwab provides access to crypto exchange-traded funds (ETFs). Additionally, a recent executive order signed by President Donald Trump encourages the inclusion of alternative assets, including cryptocurrencies, in workplace retirement plans.
Expert Perspectives: Risk Versus Reward
Despite rising interest, financial advisors express caution. Jerry Schlichter, founding partner of Schlichter Bogard, emphasizes that retirement plans should prioritize safety and security, warning that newer asset classes like cryptocurrency carry significant risks.
Volatility is a primary concern. Bitcoin has exhibited approximately five times the volatility of the broad U.S. stock market over the last year, according to iShares data. Historically, bitcoin has suffered severe downturns, including a 74% decline in 2018 and a 64% drop in 2022. However, it has outperformed traditional assets like stocks, bonds, and gold in most other years since 2015.
Another challenge is crypto’s limited long-term track record, which complicates traditional retirement planning frameworks. Melissa Caro, certified financial planner and founder of My Retirement Network, notes the absence of extensive historical data on cryptocurrency performance as a key reservation among advisors.
Guidelines for Responsible Crypto Investing in Retirement
For investors considering crypto within retirement accounts, experts recommend a measured approach. Thomas Racca from Navy Federal Credit Union advises aligning crypto exposure with individual risk tolerance and investment horizon. Younger investors with longer timeframes may better absorb volatility than those nearing retirement.
Joshua Brooks, CFP and founder of Exponential Advisors, stresses the importance of conducting thorough research and maintaining a clear, long-term investment thesis rather than relying on price momentum.
Financial planners generally advocate limiting cryptocurrency allocations to a modest portion of the portfolio—typically between 5% and 15%—to mitigate potential adverse impacts on retirement goals. Caro highlights the prudence of exercising caution given the asset class’s uncertainties.
Conclusion
While cryptocurrency’s recent gains have sparked increased interest in retirement portfolios, experts largely agree that it remains a high-risk investment. Prospective investors should carefully assess their risk tolerance, conduct diligent research, and consider conservative allocation strategies to preserve retirement security.
FinOracleAI — Market View
The growing integration of cryptocurrency into retirement accounts reflects increasing investor appetite for alternative assets amid strong recent crypto performance. However, the significant volatility and limited long-term data present material risks that could affect retirement outcomes. Market participants should monitor regulatory developments, brokerage offerings, and crypto price stability as key indicators.
Impact: neutral
