Growing Demand for Alts in Retirement Strategies: Report
Alto, a self-directed IRA platform focused on private markets and alternative assets, has released a new research report titled “Tomorrow’s Retirement Is Here: Why Alternatives Are No Longer Optional,” highlighting emerging trends in retirement planning across generations. The findings point to a fundamental shift in investor behavior, with confidence in traditional markets declining and a growing appetite for diversification through alternative investments.
“The investing playbook no longer fits the way we are planning for retirement,” said Eric Satz, Founder and CEO of Alto. “As an industry, we have a responsibility to evolve to empower investors with greater choice, more flexibility, and the tools to take control of their financial futures.”
Surveying 1,000 investors across generations, the report uncovered several compelling trends:
Eroding confidence in public markets: Only 12% of respondents expressed strong confidence that the stock market alone would be sufficient to support their retirement.
Urgent need to accelerate savings: Gen X, nearing retirement age, reported a median retirement savings of just $82,000, underscoring the need for expanded and diversified investment tools.
Rising appetite for alternatives: Two-thirds of respondents already allocate some capital to private markets or alternative assets, and 82% of those investors plan to increase their allocations within the next six months.
Educational gaps remain a major barrier: While experienced investors are ramping up their exposure to alts, 83% of non-participating investors cite a lack of information as a key reason for inaction. Nearly 47% of all investors surveyed said they don’t know what investment options are available, highlighting the need for better education and guidance.
Underutilization of IRAs: More than 60% of Gen X, Millennials, and Gen Z investors aren’t using IRAs for retirement savings, relying instead on 401(k)s and missing opportunities to diversify.
Lack of professional advice: 76% of Millennials and 70% of Gen X do not work with a financial advisor. Alarmingly, 34% of Gen Z respondents say they get their financial advice from TikTok, compared to only 28% who consult a professional advisor.
Alto currently serves as custodian for over $1.7 billion in assets across 30,000 self-directed IRA investors and supports more than 2,500 private market issuers who have raised capital through the platform.