Empower Survey Reveals Growing Advisor Support for Private Market Investments in Retirement Plans

While diversification and return potential drive interest, 2/3 say greater ERISA/regulatory clarity is needed

A new survey today from Empower uncovers significant advisor interest in bringing private market investments into defined contribution portfolios.

Empower’s July 2025 survey of financial advisors found that 68% already utilize private market investments—including private equity, private real estate, and private credit—primarily in wealth-advised or high-net-worth accounts. Notably, 58% of advisors who utilize private market investments today would recommend them within retirement plans. That figure jumps to 75% among advisors who also serve pension or defined benefit plans, and 43% of advisors overall, signaling growing interest.

“Private markets are not a niche corner of the investment landscape,” said Edmund F. Murphy III, President and CEO of Empower. “With most U.S. companies privately held and trillions of dollars from individuals already invested, expanding access to these markets through defined contribution plans presents a significant opportunity to enhance long-term retirement outcomes. Advisors have a crucial role to play in responsibly guiding that evolution.”

“Aligning the 401(k) system to private markets investing normalizes the U.S. retirement system with the rest of the international and defined benefit investing universe,” said Murphy.

According to the survey of advisors, the top perceived benefits of private market investments include:

Diversification (62%)
Higher return potential (48%)
Lower correlation to public markets (48%)

However, advisors also cited liquidity (68%), fees (48%), and investment complexity (33%) as the main challenges to broader adoption.

Importantly, 66% of advisors indicated that greater ERISA/regulatory clarity would increase their likelihood of recommending private markets in retirement plans, signaling a readiness to engage once the policy environment evolves.

“As regulatory guidance develops, we see advisors playing a pivotal role in helping plan sponsors evaluate private investment options,” Murphy added. “Professionally managed accounts and prudent exposure limits can help mitigate risk while offering retirement savers access to a broader investment universe.”

Empower believes advisors are well-positioned to support the responsible integration of private market investments into defined contribution retirement portfolios, supporting participants in their pursuit of long-term financial security.

In May of 2025 Empower launched a new program that will pave the way for private market investments to be included within defined contribution retirement plans.

Private investments offered through seven top asset managers may be implemented through collective investment trusts (CITs), providing limited exposure to diversified pools of private equity, private credit and private real estate, a structure that is designed to provide liquidity protection and reduced fee exposure.

This landmark initiative is designed to provide individuals with access to a broader range of investment options, enabling them to further diversify their portfolios and potentially maximize their retirement savings.

Contacts

Media contacts

Stephen Gawlik - Stephen.Gawlik@empower.com

Mandy Cassano - Mandy.Cassano@empower.com