Retirement Savers Open to Private Markets, Cautious on AI

Retirement savers are receptive to private market investments and artificial intelligence in workplace plans, but want clearer information and a say in how the tools are used, according to a new Invesco survey.

Invesco and Ipsos surveyed 517 U.S. defined contribution plan participants employed by organizations with at least 1,000 workers. The findings gauge participants’ attitudes; they do not measure whether access to private assets or AI tools improves retirement outcomes.

The survey found that 65% were interested in a target-date fund with a modest allocation to private markets. Participants expressed interest in private lending, infrastructure, real estate and private equity. Risk tolerance was the leading factor shaping their openness to those investments.

Fees remain a consideration. Ninety-three percent agreed that private market investments typically carry higher fees and offer potentially higher returns. Among that group, 58% viewed the trade-off positively. The potential for higher returns is not a guarantee, and the survey underscores the need for participants to understand what they would pay and the risks they would assume.

The findings build on Invesco’s winter survey, in which 86% said they were definitely interested in or open to private markets in their workplace plan, subject to learning more about risks and fees.

Participants also favored a limited role for AI. They were more comfortable with its use in portfolio monitoring, rebalancing and risk assessment than in setting retirement goals or developing financial plans. Ninety-seven percent said the ability to set boundaries on AI investment decisions was at least somewhat important; 70% called it very important.