For wealth managers, the growing appetite for private markets among retirement plan participants signals an important potential shift in portfolio construction and client expectations.
New research suggests that defined contribution participants—long excluded from private equity and private debt allocations—are increasingly open to including these strategies if given the chance.
According to the Schroders 2025 U.S. Retirement Survey, 45% of participants in 401(k), 403(b), or 457 plans say they would invest in private assets if access were provided. That figure is up sharply from 36% just a year earlier. This trend underscores a broader policy push: regulators and policymakers, including the White House, are signaling stronger support for bringing alternatives into retirement savings vehicles.
An executive order issued August 7 directs agencies to explore expanding retirement plan access to private equity, private debt, cryptocurrencies, and other alternatives. Shortly afterward, the White House Council of Economic Advisers emphasized that plan participants could benefit from improved diversification, enhanced risk-adjusted returns, and higher income potential.
Still, education remains a key hurdle. Schroders found that only 12% of retirement savers describe themselves as “very knowledgeable” about private assets, while 40% report being “somewhat knowledgeable.” For most participants, limited exposure to the asset class has translated into limited understanding. “To date, access to private markets in the U.S. has been restricted to institutions and ultrahigh-net-worth investors, so there hasn’t been a reason for most investors to gain a better understanding of the asset class,” says Deb Boyden, head of U.S. defined contribution at Schroders.
The survey also explored how participants envision allocating to private assets within their retirement portfolios. Among those interested in private equity and private debt, 6% say they would allocate more than 15% of their retirement savings to the category. Another 36% would allocate between 10% and 15%, while 51% would keep the allocation below 10%. That distribution suggests participants are generally cautious, preferring modest exposure as a diversifier rather than a dominant allocation.
Notably, more than half of respondents (53%) also view private assets as risky. This perception reinforces the importance for advisors and plan sponsors to provide context, risk education, and clear communication around liquidity, valuation, and time horizon considerations.
For RIAs and wealth advisors, the findings are significant. With more than $12 trillion in defined contribution retirement savings, even a modest allocation shift toward private assets could represent a substantial flow of capital. Firms with expertise in alternative strategies—and the ability to explain them in practical terms to clients—may be well-positioned to capture demand as regulatory frameworks evolve.
The Schroders survey was conducted between March 25 and April 17, with 1,500 U.S. investors ages 29 to 79, including 602 actively participating in workplace retirement plans. For advisors, the data highlights not only rising client interest in private markets but also the clear need for thoughtful guidance, fiduciary oversight, and education as access expands.
