Nearly half of retirement plan participants would invest in private assets, Schroders finds

Nearly half of US retirement plan participants say they would invest in private assets such as private equity and private debt if those options were made available in their workplace plans, according to a new survey report from Schroders.

Schroders’ 2025 US Retirement Survey, which polled 1,500 investors nationwide, found that 45% of respondents with access to a 401(k) or similar plan expressed interest in allocating part of their savings to private equity or private debt investments if their plan offered access to those asset classes.

Among that cohort, the majority said they would take a measured approach: about half (51%) would allocate less than one-tenth of their retirement savings, while more than one-third (36%) would consider putting in between one-tenth and fifteen percent .

The survey findings released Tuesday also point to growing demand for diversification and return potential beyond traditional stocks and bonds. More than three-quarters of interested participants (77%) said they would increase their plan contributions if private assets were included.

However, the report also highlights persistent concerns: 53% of respondents described private assets as risky, and many cited a lack of understanding about these investments.

“It’s no secret that most investors are not very knowledgeable about private assets,” said Deb Boyden, head of US defined contribution at Schroders. "To date, access to private markets in the US has been restricted to institutions and ultra-high net worth investors, so there hasn’t been a reason for most investors to gain a better understanding of the asset class."

Despite the Trump administration's executive order directing the Department of Labor to consider broadening access to alternatives in DC plans, just 30% of respondents to Schroders' survey anticipate private assets to show up on their plan menus in the next five years, while another 47% said they were unsure. 

With traditional barriers to entry in DC plans set to fall away in the next few years, Boyden called for a more concerted effort to arm workers with knowledge, asserting that " the quality and quantity of investor education resources must improve.”

Schroders' findings echo a recent poll by Empower, which found 79% of retirement plan participants saying all investors should have access to the same investment products as institutional investors. Seventy-three percent agreed that having professionally managed private investments in retirement plans helps level the playing field, and nearly one-third said they would allocate between one-tenth and fifteen percent of their retirement savings to private assets .

Advisors are also showing increased support for private market investments in defined contribution portfolios. Another survey from Empower found that 68% of advisors already use private market investments in wealth-advised or high-net-worth accounts, and 58% would recommend them for retirement plans. Still, two-thirds of advisors said they would be more likely to recommend private markets if there were greater regulatory clarity, with liquidity, fees, and complexity cited as the main challenges .

Despite the momentum, some policymakers remain skeptical. Democratic Senator Elizabeth Warren in particular has warned of the risks associated with including alternative assets and cryptocurrencies in 401(k) plans.

"President Trump just granted private equity billionaires their biggest wish: access to Americans’ retirement savings. But it’s a rotten deal: the data shows private equity has failed to deliver the returns it has promised while saddling investors with exorbitant fees," Warren said in a statement immediately following the Trump executive order.