Market research has provided data on how much Bitcoin the average investor would need to retire by 2035.
Notably, Bitcoin is now becoming a serious part of retirement conversations, especially as the U.S. plans to include it in mainstream 401(k) retirement plans. Some of the loudest voices in the space see it as the ultimate tool for preserving wealth.
Michael Saylor, the Executive Chairman of Strategy, has highlighted this point for years. In April 2022, he told CNBC that he believes Bitcoin is the perfect retirement asset, arguing that it is safer than real estate or stocks.
Research Showing How Much Bitcoin You Need to Retire
Amid these discussions and the persistent accumulation trend among investors with conviction, the question is, how much Bitcoin would someone actually need to retire comfortably?
This is exactly what researcher Sminston With set out to answer. Specifically, he built a study covering 96 countries and nine different age groups, from 5 years old to 75.
His model looks forward to 2035, assuming 7% annual inflation, and then calculates retirement costs based on each country’s average income.
To keep the expectations realistic, he used a conservative Bitcoin price forecast: the 5th percentile of a long-term power-law trend line. He also assumed retirees would spend their Bitcoin directly on living expenses and plan to live to 100 years old.
Bitcoin Retirement Requirement by Country
Notably, the findings are rather interesting. Across most of the world, the amount of Bitcoin needed to retire by 2035 is below 1 BTC. However, the requirements depend on where you live and how old you are now.
At the top of the scale are wealthy places like Bermuda, Norway, Luxembourg, Qatar, and Ireland. In these countries, the chart shows retirement needs in the 1 to 5 BTC range for most age groups, with the youngest people requiring even more because they have longer retirements to cover.
On the lower end are countries with lower costs of living, such as South Sudan, Myanmar, Cameroon, Kyrgyzstan, and Cambodia, where the requirements fall below 0.1 BTC, with some as little as 0.01 to 0.05 BTC depending on age.
Meanwhile, for major economies, the results land in the middle. Specifically, in the United States and the United Kingdom, most age groups would need between 0.5 and 1 BTC to retire in 2035.
Canada is slightly lower, with requirements closer to 0.3 to 1 Bitcoin depending on age. Countries like Turkey and Thailand sit around 0.05 to 0.1 BTC, making retirement much cheaper in Bitcoin terms compared to Western economies.
Age Makes a Difference
Moreover, age was an important part of the calculations. For instance, a 5-year-old today, who would technically “retire” at 15 in 2035 under this model, would need around 2.77 BTC to fund 85 years of life.
Nonetheless, a 35-year-old would need coverage for 55 years, while a 75-year-old only needs enough for 15 years, so their requirement is just a fraction of a coin. This age gradient shows why younger cohorts appear on the higher end of the chart even in lower-cost countries.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
