Private Assets Edge Closer to Retirement Plans
Momentum is building around the inclusion of private equity and private debt in workplace retirement accounts, with a growing share of participants signaling they are ready for new investment options. In its 2025 U.S. Retirement Survey, Schroders found that 45% of defined-contribution plan participants would allocate to private markets if offered the chance, up from 36% a year earlier. Even more notable, more than three-fourths (77%) of those investors said they would increase their contributions to take advantage of these opportunities, underscoring the potential for private markets to enhance retirement savings outcomes.
The survey, conducted by 8 Acre Perspective among 1,500 U.S. investors nationwide between March 25 and April 17, included 602 participants in 401(k), 403(b), or 457 plans. It highlighted a growing willingness to embrace alternative assets but also revealed a wide knowledge gap. Only 12% of respondents said they are “very knowledgeable” about private assets, while 53% described them as risky. Despite this, 78% said private markets could improve diversification, and 73% believed they could enhance long-term returns.
Regulators are watching closely. Following the recent executive order directing the Department of Labor to explore improved access to alternative assets for defined-contribution plans, policy discussions are intensifying. “On the heels of the executive order, a wider range of employees may soon be able to combine the benefits of both asset classes to better prepare for retirement,” said Deb Boyden, head of U.S. Defined Contribution at Schroders.
Still, implementation is uncertain. About 30% of participants expect private assets to appear on plan menus within the next five years, while nearly half (47%) remain unsure, and 23% do not expect them before 2030. The regulatory hurdles are considerable: defining appropriate structures, addressing valuation and liquidity challenges, and ensuring adequate fiduciary protection for plan sponsors.
In other markets, momentum is stronger. In the U.K., Schroders recently secured a £450 million ($605 million) mandate from Willis Towers Watson’s LifeSight master trust to manage the Schroders Greencoat Global Renewables+ Long-Term Asset Fund (LTAF), embedding alternatives directly into default retirement portfolios. LifeSight serves 430,000 members with over £24 billion AUM. The development provides a roadmap for how U.S. plans might eventually integrate similar long-dated strategies.
For U.S. advisors and plan sponsors, the survey’s findings highlight both opportunity and risk. On one hand, participant enthusiasm suggests that including private equity, private credit, or infrastructure in retirement menus could drive stronger engagement and higher savings rates. On the other, the knowledge gap raises concerns about misaligned expectations, illiquidity traps, and the potential for mis-selling.
“As the traditional barriers to entry are removed, the quality and quantity of investor education resources must improve,” Boyden emphasized. That means not just explaining fees and liquidity limits, but also helping investors understand where private markets fit in a long-term portfolio relative to traditional safe-haven assets like bonds and cash.
If regulators proceed, the inclusion of private markets in retirement accounts would mark one of the most consequential shifts in U.S. retirement policy in decades—reshaping asset allocation frameworks, democratizing access to alternatives, and redefining diversification for millions of savers.
