Participant Interest in Investing Retirement Funds in Private Assets Rises

More than half of workplace retirement plan participants (52%) say they would invest in private equity and private debt if those options were available through their plans, according to the Schroders 2026 U.S. Retirement Survey. That figure is an increase from 45% in 2025 and 36% in 2024.

The survey points to growing familiarity with the asset class. Nearly one-quarter (23%) of participants surveyed now consider themselves very knowledgeable about private assets, nearly double the 12% who said so in 2025. Another 40% describe themselves as somewhat knowledgeable. However, more than one-third remain unfamiliar with the investments, with 26% saying they are not too knowledgeable and 11% saying they are not at all knowledgeable.

Expectations for access to the alternative asset classes are also rising. Forty-two percent of participants surveyed believe private assets will be available in their workplace retirement plans within the next five years, compared with 30% in 2025.

Federal Proposal Faces Opposition

The growing interest in private assets comes as the U.S. Department of Labor’s Employee Benefits Security Administration moves to expand investment options available to retirement plan participants. In March 2026, the agency issued a proposed regulation, “Fiduciary Duties in Selecting Designated Investment Alternatives,” intended to clarify how 401(k) plan fiduciaries can evaluate alternative investments, including cryptocurrency and private assets.

And on November 5, The Department of Labor submitted its investment safe harbor rule for 401(k) plans to the White House Office of Management and Budget for final review, according to the federal Regulatory Information website.

The proposed regulation faces a more challenging political environment following the November midterm elections, in which Democrats won control of both the House and Senate. Congressional Democrats have argued that expanding access to alternative investments could expose retirement savers to greater risks and more complex products. Sen. Elizabeth Warren, D-Massachusetts., a vocal critic of adding alternative investments to defined contribution plans, could become chair of the Senate committee on Banking, Housing and Urban Affairs, giving her greater influence over the proposal. Democrats are also expected to increase congressional oversight of the Labor Department’s approach. The proposed rule will not be finalized until after completion of the OMB review.

The proposed rule outlines steps plan fiduciaries should take when considering alternative assets for inclusion in investment lineups and establishes a process-based safe harbor for selecting designated investment alternatives. The rule was proposed after President Trump in August 2025 issued an executive order, “Democratizing Access to Alternative Assets for 401(k) Investors.”

Participants Recognize Benefit

Most participants see potential advantages to including private market investments in retirement portfolios. Seventy-eight percent believe the investments can improve 401(k) portfolios through diversification, while 77% say they offer the potential for higher returns, according to the Schroders survey.

Still, participants who expressed interest in investing in private assets indicated they would generally limit their allocations. Among the 52% who said they would invest if their workplace plan offered access 49% reported that they would allocate less than 10% of their workplace retirement assets to private investments; 39% would allocate between 10% and 15%; 7% would allocate more than 15% and 5% were unsure how much they would invest.

Deb Boyden, head of U.S. defined contribution at Schroders, in a statement said, “Increased demand for private assets among plan participants puts the responsibility on plan sponsors and asset managers to make sure retirement savers fully understand what the asset class is and how it fits into a long-term retirement savings strategy.”

The Schroders U.S. Retirement Survey was conducted by 8 Acre Perspective from March 20 to April 15, among 1,500 U.S. investors aged 30 to 79.