Newly released survey findings from Schroders suggests US workplace participants are warming up to the notion of investing in private assets, with a solid majority indicating they'd ramp up contributions if those options were available.
According to Schroders' 2024 US Retirement Survey, 36 percent of plan participants would consider allocating part of their 401(k), 403(b), or 457 plan to private equity and private debt if these options were available, signaling a potential shift in how retirement assets could be diversified.
The survey was conducted by 8 Acre Perspective and polled 2,000 US investors aged 28-79, including 780 who are actively participating in workplace retirement plans. Among those surveyed, 80 percent indicated that access to private investments would likely increase their overall contributions to their retirement plans.
While the retail investor opportunity for private assets is apparent, most plan participants indicated they would allocate cautiously. One in two (52 percent) said they would invest less than one-tenth of their retirement portfolio in private assets, while one-third (34 percent) would allocate between 10 to 15 percent. Around 8 percent said they would lean in header with a more than 15 percent investment, and 6 percent remained unsure about how much they would commit.
“Alternative investments such as private equity and private debt have long served as important portfolio diversifiers in defined benefit plans,” Deb Boyden, head of US defined contribution at Schroders, said in a statement. “Given the evolution of the asset class in recent years, it’s a matter of when, not if, these investments will become more common in defined contribution plans.”
However, a significant barrier remains. Half of all respondents (51 percent) admitted to not fully understanding the benefits of alternative investments, and roughly two-thirds (64 percent) viewed these investments as risky. The survey also found that 52 percent of participants are unsure how to manage risk within their portfolios, with 59 percent seeking more guidance from their employers.
“Before private assets can reach their full potential, significant inroads in participant education must be made,” added Boyden.
Firms are facing increasing scrutiny over whether they can be held responsible for losses by clients whose ability to understand their investments has been compromised.
Decision deepens the two firms’ decade-long relationship
Linqto Inc. was one of the first tech platforms to promise access to small investors into the high-risk, high-reward world of private investments.
Since Vis Raghavan took over the reins last year, several have jumped ship.
Chasing productivity is one thing, but when you're cutting corners, missing details, and making mistakes, it's time to take a step back.
Stan Gregor, Chairman & CEO of Summit Financial Holdings, explores how RIAs can meet growing demand for family office-style services among mass affluent clients through tax-first planning, technology, and collaboration—positioning firms for long-term success
Chris Vizzi, Co-Founder & Partner of South Coast Investment Advisors, LLC, shares how 2025 estate tax changes—$13.99M per person—offer more than tax savings. Learn how to pass on purpose, values, and vision to unite generations and give wealth lasting meaning
