Private markets in workplace retirement savings plans
Learn more about US plan participants' appetite and understanding of private assets within their workplace retirement plans.Nearly half of retirement plan participants would invest in private markets
According to the Schroders 2025 US Retirement Survey, 45% of investors participating in 401k, 403b or 457 workplace retirement savings plans say they would invest in private equity and private debt investments if their plan provided access to these assets – up from 36% in 2024. Further, among plan participants who would invest in private assets, if offered, 77% would increase their contribution to their retirement savings plan.
Despite this growing demand, less than one-third of participants (30%) expect private assets to be available in their retirement plan within the next five years, 47% are unsure, and 23% don’t anticipate their plan menu will include private asset investments before 2030.
Key findings
Schroders recently surveyed 1,500 US investors to gain insight into their appetite for private markets investments in workplace retirement savings plans.
- Among those who expressed interest in investing in private assets through their workplace retirement savings plan, a gradual approach to allocations is preferred:
- 51% would allocate less than 10% of workplace retirement assets to private assets
- 36% would allocate between 10-15% of workplace retirement assets to private assets
- 6% would allocate more than 15% of workplace retirement assets to private assets
- 7% are unsure how much they would allocate to private assets
- 78% of plan participants say private assets can enhance 401k portfolios through diversification and 73% believe private assets provide the opportunity for greater investment return. More than half (53%) say private assets sound risky.
- Highlighting the need for more education, just 12% of plan participants consider themselves very knowledgeable about private assets, 40% are somewhat knowledgeable, 30% are not too knowledgeable, and 18% are not at all knowledgeable.
"On the heels of the recent executive order directing the Labor Department to consider improving access to alternative assets for defined-contribution retirement plan participants, a wider range of employees may soon be able to combine the benefits of both asset classes to better prepare for retirement.”
Head of US Defined Contribution
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Press Release
Schroders Study Finds Nearly Half of Retirement Plan Participants Would Invest in Private Markets
Contact Us
Deb Boyden, Head of US Defined Contribution
Deb.Boyden@Schroders.com
About the US Retirement Survey
The Schroders 2025 US Retirement Survey was conducted by 8 Acre Perspective among 1,500 US investors nationwide ages 29-79, including 602 currently participating in a workplace retirement plan, from March 25 to April 17 in 2025.