Bitget Research: 20% of Gen Z and Alpha Are Open to Receiving Pensions in Cryptocurrency

Key Takeaways

● 78% of young respondents trust alternative retirement savings methods over traditional pension funds.

● 20% of Generation Z and Alpha respondents are ready to receive their pension in cryptocurrency.

● One in five Generation Z and Alpha members primarily trust cryptocurrencies for their retirement plans, even when considering alternatives such as real estate, private retirement plans, and savings accounts.

● More than 40% of young people have already invested in cryptocurrencies, highlighting the high level of interaction with digital assets.

● 72.73% of Generation Z and Alpha respondents do not understand where or how pension funds invest. This lack of financial education could hinder the broader adoption of alternative or hybrid pension systems, including those utilizing blockchain or cryptocurrencies.

Introduction

Classical financial management tools are no longer seen as axiomatic by younger generations, as a growing number of alternatives allow them to choose the most suitable option for their specific needs. The traditional banking structure, once a cornerstone of wealth management for baby boomers, now appears outdated, expensive, and inefficient to 54% of Generation Z [11]. Many are ready to fully switch from traditional banking to peer-to-peer and social media payment applications, signalling a significant shift toward alternative financial platforms.

High fees and a lack of transparency deter technologically savvy generations. Meanwhile, the emergence of decentralized finance (DeFi), blockchain technology, and crypto-brokerage companies has opened the door to financial ecosystems that are more streamlined and better suited to the digital lifestyles of young users.

A Tink survey found that 31% of Generation Z respondents believe that their bank risks losing them as customers if its digital tools and services are not updated to modern standards [12]. The same can be said for the pension system.

By 2025, Generation Z is expected to make up more than 25% of the global workforce, significantly influencing global economic dynamics [13]. As their economic power grows, their preferences are reshaping the financial sector, putting pressure on both established pension savings schemes and crypto exchanges to adapt or risk obsolescence. Competition is intensifying as financial institutions strive to meet the demands of this tech-savvy generation. Traditional banks are introducing digital services and integrating blockchain-based technologies, while crypto exchanges are incorporating user-friendly interfaces and compliance measures to attract a wider audience.

The emergence of hybrid financial models that combine the reliability of traditional banking with the innovations of digital finance highlights the pressures these institutions face. Generation Z's demand for fast, transparent, and affordable financial solutions is not just transforming the present — is shaping the future of finance. As this generation increasingly favors decentralized and digital alternatives, they are paving the way for a financial revolution that will influence consumers, businesses, and institutions globally.

The Purpose of the Study

The study aims to assess the readiness of Generation Z and Alpha to adopt cryptocurrency-based pensions, analyze the underlying reasons for this choice, and evaluate its possible impact on crypto and broader economic systems.

The analysis of young people's preferences is intended to provide a broader understanding of their openness to and trust in alternative pension systems, as well as offer insights into the strengths and weaknesses of the current system.

The data obtained will facilitate further research into the viability of blockchain-based pension systems and digital assets, as well as the potential integration of these solutions into existing frameworks. A clear understanding of younger generations’ needs may provide governments, financial institutions, and technology innovators with useful information on how to design or reform pension systems.

Additionally, examining the cultural and psychological factors that influence trust in traditional financial systems sheds light on the financial values and expectations of Generation Z and Generation Alpha. This understanding can, in turn, promote greater financial literacy and inclusion.

Data Sources and Methodology

The study primarily aims to explore the perspectives of young individuals belonging to Generation Z and Generation Alpha. The Strauss-Howe generational theory is used for categorizing these generations [1, 2], which are defined* as follows:

● Generation Alpha: 10 years old and younger;

● Generation Z: 11-27 years old;

● Millennials: 28-43 years old;

● Generation X: 44-59 years old;

● Baby boomers: 60-79 years old;

● Silent generation: 80 years and older.

*All ages are as of 2024.

Throughout 2024, Bitget conducted surveys in three main formats:

Online Surveys (anonymous digital forms)

Tools: platforms such as Google Forms, Typeform, and SurveyMonkey.

Links were distributed through email and social media, allowing for the collection of a large and diverse sample of respondents from various age groups. At the same time, no IP addresses, email addresses, geolocation data, or other identifying information were collected to preserve the anonymity of the respondents.

Surveys on Social Media

Platforms: Instagram, X (formerly Twitter)

Social media, especially popular among Generation Z and Alpha, made it easier to reach respondents within the target age groups. Additionally, social media made it possible rapid outreach to millions of users and allowed for more detailed responses through external surveys.

Anonymous Messaging or Chatbot Systems

Tools: Telegram bots

This method did not collect user identifiers or phone numbers. The tool minimized the time required to complete the survey to reduce negative feedback from participants. Thus, the survey’s representativeness remained high, as the results were not distorted by respondents' reluctance to spend too much time on the survey.

The survey database included different age groups and information from 34,382 fully completed questionnaires (Appendix A), with questions designed to determine whether the respondents belonged to Gen Z and Alpha. Once collected, the data from respondents younger than millennials was used for analysis. This group accounted for 48.55% of the total number of respondents (16,691) (Figure 1). The analysis breaks down the evaluation based on several criteria, such as trust level, accessibility, transparency, flexibility, and others.

Fig. 1: General age structure of respondents

Analysis

Understanding the traditional pension system and attitude towards it

The initial question in the survey was designed to assess the respondents' general understanding of pensions, phrased as follows: 'How familiar are you with the concept of pensions in general?' (Figure 2).

Fig. 2: Percentage distribution of answers to the question ‘How familiar are you with the concept of pensions in general?’

The survey shows that more than 1/5 of respondents do not have even a superficial understanding of this topic, which may be due to the following factors:

● A lack of educational programs covering pensions;

● The lack of interest of younger generations in traditional pensions;

● Low trust in government among young people and growing skepticism about the future of pensions;

● Negative examples of traditional pension system's inefficiency within families or among acquaintances, making information about it seem unnecessary;

● The complexity of the pension system in certain countries, which may deter in-depth study.

Only a third of respondents (32.8%) are confident in their knowledge. This is consistent with research by Phoenix Insights, which summarizes that 58% of adults in the UK have low confidence in their knowledge of pensions, and 28% reported knowing little or nothing about pensions [3].

The results from the first question were corroborated by the answers to the next two questions (Fig. 3, Fig. 4, Fig. 5).

Fig. 3: Percentage distribution of answers to the question ‘How familiar are you with how the traditional pension system works in your country?’

Fig. 4: Percentage distribution of answers to the question ‘How confident are you in your knowledge of government pension schemes?’

Fig. 5: Percentage distribution of answers to the question ‘Do you understand how pension funds are invested to generate returns for payments?’

Notably, a study by The Pew Charitable Trusts correlates with the values obtained and indicates that only 25% of employees (by age) have read and understood the information about paying for a pension account [4]. This suggests a limited understanding of the pension plan details among young people.

It can be assumed that the technical aspects of pensions and investment strategies are either poorly communicated or uninteresting to younger generations. At the same time, 78.8% have never researched pension systems, indicating that traditional pensions may not meet the financial priorities or interests of Generations Z and Alpha (Fig. 6).

Fig. 6: Percentage distribution of answers to the question ‘Have you ever researched how pension systems are funded and maintained?’

The high percentage of respondents who are "not at all familiar" with key aspects (e.g., system mechanics, investment strategies) indicates that traditional pensions are considered opaque, complex, or not appropriate for their current stage of life. Traditional pension systems may not be perceived as appropriate or attractive to younger generations, who may prioritize more immediate financial goals or flexible, modern savings vehicles.

Generation Z and Alpha lack basic awareness and understanding of traditional pension systems. This gap highlights the need for simplified, accessible pension education tailored to a younger audience.

The shift away from traditional systems provides an opportunity for alternative pension solutions, such as cryptocurrency-based pensions, to capture the interest of these generations. Crypto's association with technology and innovation may better suit their preferences.

Younger generations may view traditional pensions as outdated. Transparent communication, modernized platforms, and a focus on how pensions align with their financial future can improve engagement. Low trust in traditional systems can contribute to a shift in preferences toward more decentralized or self-managed solutions.

Planning for Retirement

Among respondents younger than millennials, there is a clear reluctance to rely on working during old age, with many already thinking about saving for retirement. This is evident from the answers to the question, ‘Have you ever thought about saving for retirement? (Figure 7). The survey showed that 76.47% of respondents under the age of 28 have considered saving for retirement. Notably, 33.52% stated that they had already created a plan for their retirement savings, indicating that a third of the young population is taking a proactive approach. However, a significant proportion (42.97%) acknowledged that while they had thought about retirement savings, they had not yet formulated a plan. This suggests that, while awareness exists, action lags for a significant share of these respondents.

Fig. 7: Percentage distribution of answers to the question ‘Have you ever thought about saving for retirement?’

On the other hand, 23.52% of respondents indicated that saving for retirement is not a priority for them at the moment. This group may reflect individuals who have financial constraints or consider retirement planning a distant concern due to their youth. The lack of immediate action among one in five young people highlights the need for innovative approaches to educate and engage this demographic in their financial future planning.

One striking observation is that while the younger generation focuses on short-term goals, one-third (33.52%) are already planning for the long term. This trend can be attributed to increased access to financial literacy content on the Internet, the growing popularity of personal finance influencers, and a heightened awareness of economic uncertainty in recent years.

The statistics related to the question ‘At what age should people start saving for retirement?’ are shown in Figure 8, revealing a strong inclination among Generation Z and Alpha to plan for early retirement. The majority (41.24%) believe that people should start saving for retirement at the age of 18. This finding demonstrates a generational shift, as previous generations typically started saving for retirement later in life, often in their 30s and 40s. According to a study by Northwestern Mutual, the average age at which Americans begin saving for retirement is 31 [5]. Specifically, members of Generation Z report beginning at 22, almost a decade earlier than the national average. In contrast, baby boomers started at an average age of 37, indicating the growing trend of early retirement planning among younger generations.

Fig. 8: Percentage distribution of answers to the question ‘At what age do you think people should start saving for retirement?’

Another 20.6% of respondents believe that the ideal age to start saving is between 18 and 25, reflecting the expectation of building a career and stable income by that age. The vast majority (61.83%) understand that the best time to start saving is before the age of 25. In contrast, 19.26% of respondents believe that it is necessary to save at the age of 26 and later. Notably, this group’s response is almost identical to that of 18.9% of respondents who were undecided. The widespread uncertainty about the future is as prominent among the younger generation as the idea of delaying retirement savings. These sentiments likely reflect concerns about an uncertain economic future, characterized by inflation, market volatility, and a lack of trust in traditional pension systems.

This shift toward earlier saving is further supported by a Voya Financial survey that found that more than half of respondents started saving between the ages of 18 and 34, with an average age of 28 [6]. Despite this, 64% expressed regret that they did not start saving before the age of 25, which underscores the widespread desire to start planning for retirement even earlier. There is a growing awareness among younger generations of the importance of early retirement savings, likely influenced by increased access to financial education and the changing economic landscape.

Attitudes Towards Cryptocurrencies (Perception of the Role of Crypto in Pension Savings)

The survey revealed that 93.92% of Gen Z and Alpha respondents had heard of cryptocurrencies, with the most familiar being Bitcoin and Ethereum (Figure 9). Among this group, 52.7% described themselves as "very familiar" with cryptocurrencies, while 41.23% admitted to having only a vague understanding.

Fig. 9: Percentage distribution of answers to the question ‘Have you heard of cryptocurrencies (e.g., Bitcoin, Ethereum)?’

When asked about the relationship between blockchain technology and finance or investment, 91.56% of respondents said they had some level of understanding (Figure 10). However, the depth of understanding varied considerably: 33.59% reported having a good understanding of the role of blockchain in enabling decentralized finance (DeFi), while 57.97% said they had only a general understanding of its application. This correlates with a report by Blockchain Technology News, which shows that about 60% of cryptocurrency investors admit that they do not fully understand blockchain technology, the distributed ledger underlying many cryptocurrencies [7].

Fig. 10: Percentage distribution of answers to the question ‘Do you know how blockchain technology relates to finance or investments?’

The survey results show that 86.95% of younger respondents are considering using cryptocurrencies as a savings or investment tool to achieve long-term goals (Figure 11). Among them, 40.97% expressed strong interest, saying that they are actively exploring cryptocurrency options for retirement or future investments.

Fig. 11: Percentage distribution of answers to the question ‘Have you ever considered using cryptocurrencies as a savings or investment tool for long-term goals?’

The data highlight a generational shift in financial planning: almost 90% of young respondents are open to or actively using cryptocurrencies to achieve long-term financial goals. These figures are significantly higher than those reported in a Policygenius survey conducted in October 2023 [8], where only 21% of Generation Z representatives in the United States reported owning cryptocurrencies. This sharp growth could be attributed to several factors:

● Simplified procedures for investing in digital assets on cryptocurrency exchanges;

● Increased popularization of cryptocurrencies through social networks that are widely used by young people;

● Educational campaigns by crypto exchanges and financial institutions;

● The recent price dynamics of many cryptocurrencies, sparking interest among young, ambitious investors;

● Global financial uncertainty, including inflation and declining traditional savings rates;

● Social influences, where participation in trending investment strategies among peers has encouraged younger generations to consider cryptocurrencies as essential to modern investing;

● Institutional adoption and product innovations, such as crypto ETFs;

● The rise of DeFi and Web3 technologies, which made it possible to use crypto assets not only for speculation;

● A preference among the most digitized generations (Z and Alpha) for financial tools that align with their values of inclusivity, transparency, and decentralization.

Trust in Financial Systems for Retirement Savings

The survey results show that 21.9% of Generation Z and Alpha respondents trust state pension systems the most for their retirement savings (Figure 12). This indicates that a significant share of young people continue to rely on traditional state pension plans despite the emergence of alternative financial systems. The influence of older generations and fear of change may lead this group of respondents to remain unchanged in their preferences for pension savings for a long time and overlook leading them to overlook significant drawbacks associated with these plans.

Fig. 12: Percentage distribution of answers to the question ‘Which financial systems do you trust most to secure your retirement savings?’

An overwhelming majority (79.1%) favored alternatives to traditional pension systems. These young people are concerned about the perceived inefficiencies of traditional financial institutions and state pension schemes, citing inflation and market uncertainty as key factors influencing their choice of digital assets. At the same time, three alternatives garnered almost equal numbers of votes: real estate or other tangible assets, private retirement plans and cryptocurrency investments.

A study published in the International Review of Finance in mid-2024 noted that people with low confidence in the pension system are more likely to invest in property as an alternative way to secure their retirement savings [9]. Thus, investors try to protect themselves by using (in their opinion) safe and low-volatility assets. Due to such motives, real estate is ranked second by a small margin (23.02%).

20.8% of respondents indicated they rely on employer-sponsored retirement plans, such as 401(k)s. These plans offer control and flexibility, allowing individuals to tailor their portfolios to their specific risks and retirement goals. Similarly, cryptocurrency investments enable users to customize their portfolios according to personal preferences. Additionally, 401(k)s and IRAs benefit from being well-established systems, with many senior colleagues, relatives, and friends already familiar with their advantages. This creates a compelling example of successful investments, which can attract the interest of less experienced young workers, including members of Generation Z and Alpha.

While at the beginning of the last decade, the use of cryptocurrencies to provide pensions was not even considered at the interpersonal level, in 2024 it looks realistic even at the state level. A study published in the Journal of Financial Innovation titled ‘Cryptocurrencies as Pension Fund Components: Smart Move or Misstep?’ previously explored the viability of including cryptocurrencies in pension fund portfolios [10]. The demonstrated potential for long-term retirement planning and the capacity to increase the yield of the pension fund portfolio in the future may lure a significant part of the respondents to its side. As of 2024, 20.59% of Generation Z and Alpha respondents see their future retirement as involving crypto assets, decentralized finance, and blockchain solutions.

Conclusion

The study shows significant insights into the financial views and preferences of Generation Z and Generation Alpha, including their openness to alternative pension systems, including cryptocurrency-based solutions.

More than 20% of the younger generations are not familiar with traditional pension systems, including their mechanisms, investment strategies, and benefits. This lack of familiarity is partly due to insufficient educational efforts and the lack of transparency in these systems. Many respondents consider traditional pensions as outdated, complicated, or not in line with their financial goals, resulting in low engagement and trust in these systems (only 21.9% of young respondents have a high level of trust in the traditional pension system).

The study emphasizes that although most Generation Z and Alpha respondents have thought about retirement savings, a significant number have not yet taken specific steps (42.97% do not even have a specific action plan). Despite their proactive thinking, financial constraints and competing short-term priorities often prevent young people from making long-term plans. However, they are increasingly recognizing the importance of starting saving early, with many advocating saving as early as 18 (41.24%).

The vast majority of respondents have at least heard of cryptocurrencies, and more than half consider themselves to be familiar with blockchain technology (52.7%). This indicates a high awareness of new financial technologies among younger generations, fueled by their digital upbringing. Cryptocurrencies are perceived as modern, transparent, and flexible, making them an attractive alternative to traditional financial systems.

The study found that 20.59% of Generation Z and Alpha trust cryptocurrencies for their retirement savings. This openness reflects their confidence in decentralized financial systems and their alignment with values such as transparency, flexibility, and innovation. However, challenges such as volatility, regulatory uncertainty, and security concerns need to be addressed for widespread adoption.

Younger generations are attracted to pension solutions that offer adaptability and transparency, and technological sophistication is an attractive feature. Cryptocurrency-based pensions echo these preferences as they represent a break from rigid centralized structures.

The findings underscore the need for governments, financial institutions, and technological innovators to rethink existing pension systems. Simplifying traditional pension systems, increasing financial literacy, and implementing blockchain-based solutions can help bridge the trust gap with younger generations. In addition, addressing regulatory concerns and ensuring stability in cryptocurrency markets are important steps toward integrating these technologies into pension systems.

The willingness of Generation Z and Alpha to explore cryptocurrency pensions indicates a potential transformation in how retirement savings are managed in the future. Blockchain technology allows for transparent, efficient, and user-centred pension solutions. However, achieving this vision requires cooperation between regulators, financial institutions, and technology providers to create secure and reliable systems.

Prospects for Future Research

● Reasons for the lack of pension education among young people. Investigating the correlation between education levels and the preference for cryptocurrencies as a tool for retirement savings.

● Geographical distribution of respondents. Analyzing regional variations to highlight the benefits of crypto pension programs.

● Impact of market volatility. Examining how fluctuations affect Generation Z and Alpha's willingness to adopt cryptocurrency-based pensions.

● Role of stablecoins and CBDCs. Exploring their potential as a bridge between traditional and cryptocurrency-based pension systems.

● Tracking adoption over time. Conducting ongoing research on the integration of cryptocurrency pensions as the regulatory and technological landscape evolves.

Internal explanation of the numbers and methodology

The questionnaire consists of 11 items, with references to existing research for almost all of them.

If we talk about the central question, it is the last one: 'Which financial systems do you trust most to secure your retirement savings?' From this, we learn that 20.59% trust cryptocurrency investments the most.

The figure of 20.59% is not arbitrary. Earlier studies have highlighted the percentage of people who may or do include cryptocurrencies in their retirement savings portfolio:

Investopedia: Cryptocurrency in Retirement Accounts: 1/3 in Indonesia

FinanceBuzz: Retirement Survey: 44% in the U.S.

However, these countries are relatively advanced in terms of cryptocurrency adoption. Therefore, these figures are considered the upper limits. Since the survey is not geographically specific, it includes participants from countries with low cryptocurrency adoption or strict cryptocurrency regulation. As a result, the actual figure is unlikely to exceed 30% — this represents the percentage of people who include any portion of cryptocurrency in their retirement portfolio. The percentage of those who trust cryptocurrency more than other tools should be significantly lower.

If we overlay this data with studies on trust in other retirement savings methods (e.g., traditional plans, private retirement plans, savings accounts, real estate), the remaining share for crypto falls into the range of 10% to 30%, depending on the source. I chose the average value.

Thanks to this approach, the study can use 20.59% as a minimum benchmark. This means that if 20% trust crypto the most, the remaining 80% may also use crypto to some extent for retirement savings (ranging from $1 to $1 million).

Sources

1. https://www.finder.com/cryptocurrency/cryptocurrency-statistics

2. https://www.jstor.org/stable/2505170?origin=crossref

3. https://www.thephoenixgroup.com/news-views/wide-disparities-in-pensions-knowledge-uncovered-within-uk-population-as-majority-of-adults-report-poor-understanding/

4. https://www.nber.org/system/files/working_papers/w7368/w7368.pdf

5. https://news.northwesternmutual.com/2024-04-02-Americans-Believe-They-Will-Need-1-46-Million-to-Retire-Comfortably-According-to-Northwestern-Mutual-2024-Planning-Progress-Study

6. https://www.investopedia.com/most-people-wish-they-started-saving-for-retirement-earlier-8681428

7. https://blockchaintechnology-news.com/news/majority-of-us-crypto-investors-lack-understanding-of-blockchain-technology/

8. https://blockworks.co/news/survey-genz-more-likely-to-hold-crypto-than-stocks

9. https://onlinelibrary.wiley.com/doi/full/10.1111/irfi.12471

10. https://blogs.cfainstitute.org/investor/2022/08/04/pensions-crypto-and-trust-digital-assets-and-retirement-funds

11. https://gocardless.com/en-us/blog/americans-ditch-traditional-banks-for-peer-to-peer

12. https://tink.com/blog/news/2024-consumer-banking-insights/

13. https://www.weforum.org/stories/2022/05/gen-z-don-t-want-to-work-for-you-here-s-how-to-change-their-mind/

Applications

Appendix A

Survey

Question.	Response Options
A. Familiarity with Traditional Pension Systems
How familiar are you with the concept of pensions in general?	Very familiar
	Somewhat familiar
	Not familiar at all
How familiar are you with how the traditional pension system works in your country?	Very familiar
	Somewhat familiar
	Not familiar at all
How confident are you in your knowledge of government pension schemes (e.g., Social Security)?	Very confident
	Somewhat confident
	Not confident at all
Do you understand how pension funds are invested to generate returns for payouts?	Yes, in detail
	Somewhat
	No, not at all
Have you ever researched how pension systems are funded and maintained?	Yes, in depth
	Somewhat
	No
B. Current Awareness of Retirement Planning
Have you ever thought about saving for retirement?	Yes, I already have a plan
	Yes, but I don't have a plan yet
	No, it's not a priority for me now
At what age do you think people should start saving for retirement?	Under 18
	18-25
	26-35
	36 or later
	Unsure
Are you aware of the role of private pension plans in supplementing government pensions?	Yes, very aware
	Somewhat aware
	Not aware at all
C. Familiarity with Cryptocurrencies and Digital Finance
Have you heard of cryptocurrencies (e.g., Bitcoin, Ethereum)?	Yes, I am familiar with them in detail
	Yes, but I only have basic knowledge
	No, I am not familiar with them at all
Do you know how blockchain technology relates to finance or investments?	Yes, in detail
	Somewhat
	No
Have you ever considered using cryptocurrencies as a savings or investment tool for long-term goals?	Yes, I already use them
	Yes, but I haven't started yet
	No, I haven't considered it
D. Knowledge of Retirement Alternatives
Are you aware of other ways to save for retirement beyond traditional pensions (e.g., IRAs, crypto)?	Yes, very aware
	Somewhat aware
	Not aware at all
Do you think traditional financial systems provide adequate tools for retirement planning?	Yes, completely
	Somewhat
	No, they are insufficient
How often do you actively seek out information about personal finance and retirement planning?	Regularly (at least once a month)
	Occasionally (a few times a year)
	Rarely (once a year or less)
	Never
E. Preferences and Trust in Financial Systems
Which financial systems do you trust most to secure your retirement savings?	Traditional pension funds
	Private retirement plans (e.g., 401(k)s, IRAs)
	Savings accounts or fixed deposits
	Cryptocurrency investments
	Real estate or other tangible assets
	None of the above
Do you feel you need more financial education to make informed decisions about retirement planning?	Yes, definitely
	Somewhat
	No, I feel confident already