More than 7 in 10 American workers want access to private assets in their retirement plans, says the recordkeeper that recently announcing they will offer such access.
“Clearly, private investing is of great interest to individuals. It’s not for everyone, but those who wish to seek such investments should have the right and the ability to do so.”
Empower’s Ed Murphy
Today, Empower released new research detailing how American workers feel about having access to the same investment products as institutional investors and high-net-worth individuals.
The new Accelerating Access study comes on the heels of the Denver-based financial services provider’s May announcement of a new program that paves the way for private market investments within defined contribution retirement plans. To participate in the program, an individual must be in a plan where the employer has allowed for private investing, and the individual must engage with an advisor to make a determination about suitability.
“This research uncovers how American workers are thinking about being able to invest in new ways, outside of public markets,” said Edmund F. Murphy, III, president and CEO, Empower. “Clearly, private investing is of great interest to individuals. It’s not for everyone, but those who wish to seek such investments should have the right and the ability to do so.”
Murphy noted that 74% of respondents say including private investments in retirement plans can help workers build wealth in ways previously limited to the ultra-wealthy, and 72% say diversifying their retirement portfolio with some private market investment exposure could improve long-term retirement outcomes.
The research found 73% of survey respondents agree that having professionally managed private investments in retirement plans helps level the playing field for everyday investors, and 79% think American workers/retail investors should have access to the same investment products as institutional investors.
Further, 72% (64% of Millennials) said they believe having access to private investments in a 401(k) would make them feel like their retirement strategy is “modern and competitive.”
More than 3 in 4 (76%) want their employer/401(k) provider to offer options that reflect how the investment world—including private markets—is evolving.
When it comes to how much they are comfortable allocating to private markets investing, 31%—and 34% of plan participants—say they “would allocate” 10-15% of their retirement savings to private investments such as private equity, private real estate, and private credit. 44% say they “would be comfortable allocating” 1-10%. (46% overall).
Finally, 76% believe expanding 401(k) options to include professionally managed private investments would be a positive step for retirement savers.
“As the world changes, we need to change, too,” Murphy said. “Investing choices have evolved, and we want to provide American workers with the options they are looking for with new, innovative alternatives, which is why we are expanding in this direction.”
Research cited in response to Sen. Warren
Empower’s May 14 announcement that it will offer private markets investments to retirement plans sent shockwaves through the 401(k) market—and also triggered a June 18 letter from Sen. Elizabeth Warren (D-MA), ranking member of the Senate Banking Committee, criticizing and asking questions about the move because of the threats she sees that these types of investments pose to Americans’ retirement savings.
In its response Monday to Warren’s inquiry, Empower cited statistics from the new research showing strong 401(k) participant interest in access to private markets investing.
Empower also noted the U.S. has seen a nearly 50% decline in the number of publicly listed companies since the 1990s. Meanwhile, the global private equity market has grown to over $13 trillion, capturing the majority of early-stage growth that everyday investors increasingly cannot access through traditional retirement plans.
Empower’s Accelerating Access study is based on June 2025 online survey responses from 2,205 Americans age 18+ including 1,008 respondents who participate or had participated in an employer-sponsored retirement plan.
Recognized as the second-largest retirement services provider in the U.S. by total participants, Empower administers approximately $1.8 trillion in assets for more than 19 million individuals.
SEE ALSO:
• Empower Defends Private Markets in 401(k)s Move in Response to Warren Letter
• Sen. Warren Questions Empower’s ‘Private Markets Investments in Retirement Plans’ Initiative
• Empower Offering Private Investments in DC Plans