Recent studies have shed light on the amount of Bitcoin an average investor might need to comfortably retire by 2035.
Bitcoin is increasingly becoming a focal point in retirement planning discussions, especially as the United States considers incorporating it into standard 401(k) plans. Many advocates argue that it serves as a powerful tool for wealth preservation.
Michael Saylor, Executive Chairman of Strategy, has long emphasized this perspective. In April 2022, he shared with CNBC his belief that Bitcoin represents an ideal retirement asset, suggesting it’s more secure than traditional investments like real estate or stocks.
Saylor’s model projects forward to 2035 under the assumption of a 7% annual inflation rate and calculates retirement expenses based on each nation’s average income levels.
To maintain realistic expectations, he utilized a conservative forecast for Bitcoin prices: specifically drawing from the lower end (5th percentile) of a long-term power-law trend line. The model also assumes retirees will use their Bitcoin directly for living costs and plan to live until age 100.
Bitcoin Retirement Needs by Country
The results are intriguing. Globally, most regions require less than one BTC to retire by 2035. However, these needs vary significantly depending on one’s current location and age.
Countries with higher wealth such as Bermuda, Norway, Luxembourg, Qatar, and Ireland appear at the top end of requirements—ranging from one to five BTC for various age groups—with younger individuals needing more due to longer anticipated retirements.
Bitcoin Needed for Retirement by 2035 | Sminston With
Conversely, nations with lower living costs like South Sudan, Myanmar,
Cameroon,
Kyrgyzstan,
and Cambodia see requirements below
<0.1 BTC—some even between
<0.01 –
<0.<05 BTC depending upon age groupings.<
Major economies fall somewhere in between;
For example:
The US & UK typically show needs ranging from approximately half-a-coin up through just under full-BTC marks when looking towards
< year-end target date:
< Canada stands slightly beneath those figures; estimates hover around
< .3-to-full-coins needed across differing ages;< countries Turkey/Thailand remain affordable options where totals lie closer towards fractions equating roughly < .05-to-.1 per individual
Aging Factors Matter
The factor most influencing these calculations was indeed Age itself:
A child aged five today would theoretically “retire” fifteen years later within our hypothetical framework — requiring nearly three whole coins over eighty-five-year lifespan coverage period whereas thirty-five-year-olds necessitate fifty-five-years’ worth funding provisions yet seventy-fives demand mere fractional coin amounts given shorter spans remaining post-workforce exits altogether!