There’s no ignoring the popularity of cryptocurrencies. Over the last decade, we’ve been bombarded with headlines of people turning a few hundred pounds into life-changing money.
And of course, there’s the risk element to it, but the upside to this kind of digital asset has won over even the most sceptical people. Essentially, what started as a fringe idea is now being talked about in serious financial circles and beyond.
Even here in the UK, more long-term investors, savers, and even pension holders are starting to look at crypto not as a quick flip, but as a potential part of their future retirement income. So, more people are starting to ask: Should crypto be part of my pension plan?
Why Invest Your Pension in Cryptocurrency?
Understanding Pension Options and Flexibility in the UK
If you work in London (or anywhere else in the UK), chances are you’re already paying into some kind of pension.
Broadly speaking, there are two types of pension: defined benefit (DB) schemes, which promise a set income when you retire (also known as final salary or career average pensions), and there are defined contribution (DC) schemes, whose value on retirement depends on how much you put in and how well the investments perform (i.e. your contributions are invested).
Today, most people are in DC schemes, especially if you’re part of a workplace pension. If you’re self-employed or run your own company, you might be using a SIPP (Self-Invested Personal Pension) or an SSAS (Small Self-Administered Scheme). These workplace pensions are mostly similar in all regards, except for one thing: control.
Most pensions are very restrictive when it comes to investing your money. Your funds are mostly subject to pre-selected funds or default portfolios that are considered safe, but don’t experience any real growth.
On the other hand, SSAS pensions give you that much-needed flexibility to invest your hard-earned money in ventures and assets that you’re actually interested in and have really high growth potential.
Today, one of the few financial assets that fits that description is cryptocurrencies, and a lot of people are keying into it as their pension investment.
The Attraction of Crypto
Right now, you might be asking, “If I can invest in a wide range of financial assets with SSAS pensions, why should I consider crypto?” Fair question. Well, let’s start with the obvious: growth.
At the end of 2015, the total cryptocurrency market cap was sitting somewhere between $5 billion and $8 billion. Fast forward to May 2025, and it’s now in the ballpark of $2.5 to $3.5 trillion USD. That’s a staggering leap in less than a decade.
Zoom in on the UK, and similar projections exist; the crypto market is expected to hit US$619 million by 2030, growing at an annual rate of 11.1% from 2025 to 2030. So, whether or not you’re a believer, the numbers speak for themselves.
But it’s not just about raw returns. Crypto markets are open 24/7, giving investors more flexibility and room to make decisions.
There’s also the decentralised nature of cryptocurrencies that provides a wonderful alternative to traditional finance, especially in times like these where inflation is through the rough, and the economy isn’t really stable.
Risks and Reality Check
There’s no doubt about it, crypto assets are exciting, they’ve practically opened up new doors in the financial world, especially for investors looking for high-growth opportunities.
But when we’re talking about something as important (and long-term) as your pension, the risks need to be taken seriously. First, there’s the volatility.
Yes, volatility is part of what makes crypto attractive, but it’s also what makes it unpredictable. Prices can jump 30% within a week and drop just as fast. That’s fine for short-term traders, but for long-term investments like your pension? It can be a serious concern.
Then there’s the issue of protection. There’s no FSCS pension coverage and this can be scary with the possibility of something going wrong in the crypto space.
Specifically, if a crypto exchange goes under or your digital wallet is compromised, there’s really no one to bail you out. That’s why it’s really important to only use FCA-regulated platforms and custodians that meet UK security standards.
Note
Investing in crypto through your pension scheme isn’t the same as trading like a retail investor. It’s not as simple as logging into Binance and buying Bitcoin.
For one, SSAS pensions can’t hold crypto directly in most cases, but they can invest in vehicles that give you exposure to crypto, like certain private companies, crypto funds, or regulated investment structures.
With that in mind, it’s important to understand that this is still a regulatory grey area, especially when it comes to custody, storage, and HMRC rules. That’s why it’s crucial to get proper guidance from qualified tax and financial advisors before making any moves.
Is It Wise?
Short answer: yes, but only with caution. You get access to the kind of growth potential that’s been part of the crypto space for over 15 years. But this isn’t something to go into casually.
If you’re experienced, understand the risks, and have a clear long-term plan, crypto can absolutely earn a place in your pension portfolio. Just remember, it should never replace traditional, stable pension assets like diversified funds, bonds, or blue-chip equities.
Crypto in Your Pension
Crypto isn’t just a buzzword anymore, it’s a real option being considered by more UK pension holders, especially those with flexible setups like SSAS.
But this isn’t something to dive into blindly. Yes, the growth potential is massive, but so are the risks. If you’re thinking about adding crypto to your retirement plan, do it with eyes wide open, a solid strategy, and professional advice.
