Bitcoin is profitable on a long-term basis and if the worker has a 20 years and above cushion before his retirement, he would be holding for long and his investments overtime must've experience the compounding effect of Bitcoin price appreciation, and would be much in profits, the volatility has much of it's effects on a short term basis, long-term is safer and more secured.

You know what.  If you want to invest in a retirement plan, maybe you should simply put your money straight into Bitcoin.  Why use Escrows or get the Government to be your middle man?

It may be very enthusiastic for some people.  Particularly for Bitcoiners.  But realistically, how many people who put money into Bitcoin acknowledge the risks involved?  If they decide to invest in a Bitcoin retirement plan, they have to know it may turn out very well or very bad too.  I do not know what to think of this.  A lot of people may involve themselves way too much without realizing the risks they are taking.

As a strictly optional measure, at a first glance one could think that this could work, at least if the long term growth of Bitcoin continues. Basically, it would be like "the government should ensure I really DCA and don't panic in adverse situations". And it could be combined with the same benefits like a stock retirement plan like in Scandinavian countries.

Perhaps it has a "systemic" effect which could be negative in the medium to long term: Bitcoin has not the same effect than other assets pension funds invest into. This could lead to problems if it becomes too popular.

In particular, if the government invests in assets containing stocks, like ETFs, then it eases the access to liquidity to the companies which have emitted those stocks. This effect isn't present if it instead invests in Bitcoin.

On the other hand, it could also have a positive effect, as during stock market bubbles, it could drive away too much investment into stocks.

So as long as this "pension DCA" doesn't become a bubble itself, it could be feasible.

However, I can't repeat too often that there is no guarantee that Bitcoin continues to grow in the long term. Thus you never should organize your entire retirement plan on this model.

This is a good idea but this can only happen in a nation that is Bitcoin friendly, if this kind of policy is implemented it will be so great and I know some set of people will go with it while some will be scared because of the volatile nature of Bitcoin reasoning being that if maybe Bitcoin falls there accumulated retirement money will also fall so some people who don't know the ability of Bitcoin very well will be scared to go with such policy but those who are already into Bitcoin investment and knows the potential of Bitcoin will gladly accept it, Bitcoin investment is a good investment and if maybe this policy is adopted by May government it will help improve the the value of Bitcoin and also make a lot of people who are interested in such policy become consistent in there accumulation journey, so imagine the government adopted such policy and someone who still has 30 years of working before his or her retirement decides to use such policy his retirement payment will be huge, I wish government will adopt this policy it will really help there citizens a lot especially those who understand the potential of Bitcoin and those who don't understand will do later after.

Fidelity ^{["largest 401(k) provider in the U.S"]} started offering it back in 2022 and unfortunately, it had and still has a high cap of 20%... If I were to go on that route, I'd limit it to 5 or 10% at max ^{[I love Bitcoin, but none of us can predict the future so I prefer to minimize the risks as much as possible]}: How Does the Fidelity 401(k) That Allows Crypto Work?

I think that as long as governments are resistant towards bitcoin, such retirement plans are only pipe dreams. Although the US is working nicely to incorporate bitcoin, most other countries out there are still waiting and playing it from the grey area. They will follow US lines of action.

So for now, fiat is your best option while planning for a retirement. Dont forget that inflation still can catch up and make that entire plan useless, so if you dont like your job change it while you still have time, working on what you fell passionate about only allows you to accumulate more while you can.

While collecting bitcoin for the future will never be a bad idea so keep doing that and see how our half-brained politicians work things out.

Where I see the advantage in the whole of this idea is the fact that it will be a super long-term investment plan and the fact that Bitcoin have come to stay will give room to these individuals subscribing for the bitcoin retirement plan option to benefit substantially from the system. Let's put into consideration what the potential growth of Bitcoin will be for the next 20 - 30 years then imagine the profitability of this. Again, the investment will be in DCA which means if things go wrong at a point, the individuals involved can decide to switch their plan.  

Although the potential of Dollar rising in the future is there and unless there's an emancipation of another global currency that could outshine Dollar in the future, dollar will continue to lead the world's transactions. Who knows if it would be bitcoin that will take over the space or the efforts of the BRICS will ever come into reality. As for the Nigerian Naira, we've only seen it depreciated over the years, so it is already risky leaving your retirement funds in Naira.

When you talk about volatility, I admit that there will be short-term effects and fluctuations like currently experienced, however, bitcoin is already an industry leader in the digital assets and financial technology, what will beat bitcoin is not yet in existence, maybe in the near future but for now, it will continue to lead and appreciate in itself over the long period of time.

Mind you, no one would be forced to invest their pension funds into bitcoin but that could be an option or alternative as stated by OP, so if I was given an option to choose, I will definitely go for bitcoin. I know such monumental progress in a country's financial institution will require  new set of policy implementation and public enlightenment to enhance the knowledge of the audience and beneficiaries to that effect.

I'm not an US citizen, so correct me if I'm wrong.

I read that ETFs do exist in 401(k)s, but it's just not common. So, this mean they can include Bitcoin ETFs in their retirement plan, right? I doubt the government will offer the real coins when they already have the ETFs version.

Which mean people now have an option to invest in Bitcoin, it just depend on their choice whether they want or not.

Allowing anybody to create a wallet for you with the person sharing your seed phrase with you has already defeated the purpose of private ownership that bitcoin is all about, a duplicate copy of your seed phrase with anybody outside can eventually lead to compromise of your coins.  

I think the option should still be that, in your contributory pension scheme, hence the government wants to pay you, it should be in fiat, then you can on you own volution create a wallet for your self, hence the money comes in, you convert it to BTC and send it to your wallet, with the intention of investing for your retirement, instead of allowing the government create a wallet for you.