Joining Participants and Advisors in Growing Momentum

Empower today announced new survey findings revealing strong employer interest in adding private market investments to defined contribution (DC) retirement plans.* The results follow earlier studies of plan participants and financial advisors, together highlighting broad demand across the retirement ecosystem for expanded access to private equity, private credit, and private real estate.

In the new survey of plan sponsors:

• 98% say they have a high to moderate understanding of private market investments.
• 54% anticipate participants would be enthusiastic about having such access.
• 43% have already received inquiries from participants about such access.
• 72% are actively discussing the opportunity with advisors and consultants.
• 96% would likely add private market investments if fiduciary and regulatory guidance were clarified.

“Employers are ready to take the next step in modernizing retirement plans by including private markets, provided the policy environment is clear,” said Edmund F. Murphy III, President and CEO of Empower. “This aligns directly with what participants and advisors have already told us — the appetite is there, and we believe private markets can play a meaningful role in retirement outcomes.”

Industry Research Supports Momentum

The new Empower findings come as independent research further reinforces the case for private markets in DC plans. A new white paper from Cerulli Associates and the Defined Contribution Alternatives Association (DCALTA) highlights that:

• Stakeholders across the DC ecosystem are developing product and education strategies to meet participant needs with private market solutions.
• Private market strategies should be embedded within professionally managed investment options (not offered as standalone choices).
• Collective investment trusts (CITs) are likely to become the de facto structure for providing access.
• The industry is already addressing key operational hurdles, including liquidity, fiduciary considerations, and participant communication, by building frameworks that align private markets with public market investment processes.

The paper also emphasizes the importance of “myth busting,” noting that professionally managed allocations can responsibly provide participants with access to assets when needed — similar to how other institutional and international retirement systems already operate successfully.

A Three-Lens View: Participants, Advisors, and Employers

• Plan participants: In Empower’s Accelerating Access study (July 2025), 79% of workers said all investors should have access to the same investment products as institutions, and 73% agreed that professionally managed private investments in retirement plans help level the playing field. Nearly one-third said they would allocate 10-15% of their retirement savings to private markets.
• Advisors: Empower’s advisor survey (July 2025) found 68% already use private markets in client portfolios, and 58% would recommend them in retirement plans today — rising to 75% among those also serving pensions. Importantly, 66% said greater ERISA/regulatory clarity would increase their likelihood of recommending private markets within DC plans.
• Employers: Today’s findings show plan sponsors are aligned, with nearly all indicating readiness to act once fiduciary guardrails are clear.

Empower’s Private Investing Program

The new survey follows Empower’s May 2025 announcement of a groundbreaking program paving the way for private market investments to be included in DC plans. Empower has aligned with top-tier asset managers to deliver diversified pools of private equity, private credit, and private real estate through collective investment trusts (CITs).

This structure provides participants with access to new sources of diversification, enhanced liquidity features, and reduced fee exposure. Importantly, the program requires that private market access be offered only within professionally managed accounts and in consultation with advisors, ensuring allocations are aligned with each participant’s risk tolerance, time horizon, and retirement goals.

“Empower is making a profound move on behalf of American retirement investors, who should have the ability to invest in an asset class that has the potential to diversify their portfolios and offer opportunities for returns in new ways,” Murphy said. “These new opportunities offered under an advice model deliver the guardrails necessary to help an entirely new investor class access private investing.”

By expanding options, Empower is broadening the investing universe for millions of American workers by democratizing access to an asset class that was once the exclusive domain of institutions and ultra-high-net-worth investors.

Momentum Toward Expanded Access

“With trillions already invested in private markets and a wide range of U.S. companies privately held, it’s time to expand access responsibly in retirement plans,” Murphy added. “Participants want it, advisors are ready to guide it, and now employers are preparing to deliver it. That’s a powerful signal of where the retirement system is heading.”

Read the full report Private Market Investments: Plan Sponsors Provide Perspective.

* The Private Market Investments: Plan Sponsors Provide Perspective survey was conducted online by The Harris Poll, on behalf of Empower, among 205 private sector 401(k)/403(b) benefits administrators in the U.S., August 21-28, 2025. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within ±7.4 percentage points using a 95% confidence level.

Investments in private markets are often complex and illiquid, may involve higher fees, and are typically intended for long-term investors. These investments are subject to greater risk and are not suitable for all investors.

This should not be construed as investment advice or a recommendation to invest in any specific product. Any offering of private investments must comply with applicable securities law.

ABOUT EMPOWER

Recognized as a leader in retirement services and wealth management,¹ Empower administers approximately $1.8 trillion in assets² for more than 19 million individuals through the provision of workplace and individual retirement plans, advice, financial planning and investments. Connect with us on empower.com, Facebook, X, LinkedIn, TikTok, and Instagram.

Empower refers to the products and services offered by Empower Annuity Insurance Company of America and its subsidiaries. “EMPOWER” and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America.

The information contained herein is being provided for discussion purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy or sell securities. All visuals are illustrative only.

©2025 Empower Retirement, LLC. All rights reserved. WF-4964850-0925 RO-4849492-0925

Learn more:

To learn more about how we’re empowering plan sponsors and their participants to be more engaged in their retirement plans than ever before, call us at 800-719-9914.

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