Research reveals baby boomers, retirees invest in cryptocurrency

Australia Broadcast Center

22-05-2025

Terry and Justine Sanders are not typical cryptocurrency investors.
The couple could be part of a small but growing number of senior Australians turning to crypto in a high-risk attempt to boost their retirement savings.
The pair, from Sandgate, bayside Brisbane, said they bought $48,000 worth of Bitcoin in 2019.
They said they made almost half a million dollars after cashing out four years later, which Ms Sanders said had changed their lives.
"We don't tell most people our age that we are doing crypto," the 79-year-old said.
"The few that we told thought we had absolute rocks in our heads."
After their success, they felt like that was going to change.
Research by cryptocurrency exchange Independent Reserve estimates as many as 6.5 million Australians have invested in the volatile digital currencies.
The online trading platform said ownership rates among baby boomers had quadrupled over the past six years.
Its latest annual survey of 2,000 people found the number of Australians aged over 65 who had owned crypto increased to 8.2 per cent, albeit from a low base of 2 per cent in 2019.
The number of respondents with self-managed super funds who said they would like to invest in Bitcoin doubled during the same period.
The price of Bitcoin — the oldest and most popular cryptocurrency — has increased from $5,000 in 2019 to about $170,000, with a series of booms and busts along the way.
But despite its promise as a decentralised store of wealth that bypasses the big banks, it is rarely accepted as a payment method in the real world.
Some people have become rich but for every success story, there has been a cautionary tale.
In the crypto world there is even a term for it: getting wrecked.
The Australian Securities and Investments Commission has classed cryptocurrency as a "very high-risk" investment.
ASIC commissioner Alan Kirkland said cryptocurrency was prone to crashes, making it a poorly suited investment for retirees who needed stability.
"You might get lucky but you might also lose a lot of money very fast," he said.
While most seniors were investing a modest amount, industry insiders said some pensioners were withdrawing from their super to bet on crypto.
Association of Superannuation Funds of Australia chief executive Mary Delahunty said fund managers conducted an "enormous" amount of due diligence and retail investors should do the same before they bought cryptocurrency.
"There have certainly been people who have been able to ride the cryptocurrency wave quite high and if they are happy with that risk then it can form part of a diversified portfolio," Ms Delahunty said.
Self-styled crypto coach Sydel Sierra runs an online consulting business that advises would-be investors, including Mr and Ms Sanders.
"It has a very low barrier to entry," she said.
"Anyone with a laptop or a computer and an internet connection can get involved."
Businesses like Ms Sierra's that provide advice on cryptocurrency investments are not required to hold a financial services licence.
That is because cryptocurrency is not classified as a financial product under Australian law.
The 36-year-old said she surveyed her 700 clients and found a third were older than 60 and most retirees had heard about cryptocurrency from their adult children.
She said half her clients had at least $60,000 invested in crypto and 10 per cent had a portfolio of more than $300,000, and that figure was increasing.
"Baby boomers and retirees are obviously looking at the types of gains [millennials] are getting and there's a bit of FOMO," Ms Sierra said.
"They want in."
Cryptocurrencies are largely unregulated, which makes them fertile ground for fraud and scams.
With no dedicated laws, ASIC has been left to regulate by enforcement of breaches of existing laws such as the Corporations Act.
In the last financial year, the Australian Financial Complaints Authority received more than 200 complaints about cryptocurrency, but said it expected that number to rise in coming years with an increase in uptake.
Australians reported losing $170 million to crypto scams in 2023, according to the Australian Federal Police, which said the money lost was rarely recovered.
Mr Kirkland said there was little recourse for people who fell victim to a dodgy operator.
"If something goes wrong you don't have the same consumer protections," he said.
"[You don't have] the right to make a complaint and the right to go to an independent body that you would have if you were dealing with a more traditional financial firm."
This article is not financial advice. If you are concerned about your own financial situation you should seek independent, personal financial advice that takes account of your own individual circumstances.