More Plan Participants Familiar With, Interested in Private Investments

More than half of U.S. 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 share has risen from 45% in 2025 and 36% in 2024. Familiarity is also growing: 23% of participants now describe themselves as very knowledgeable about private assets, nearly double the 12% who said so in 2025, and another 40% say they are somewhat knowledgeable. Still, more than one-third remain unfamiliar, with 26% not too knowledgeable and 11% not at all knowledgeable. Expectations of access are also rising, with 42% of participants believing private assets will be available in their workplace plans within five years, compared with 30% in 2025.

The survey arrives as the U.S. Department of Labor's Employee Benefits Security Administration moves to widen investment options in retirement plans. In March 2026 the agency proposed a regulation, "Fiduciary Duties in Selecting Designated Investment Alternatives," intended to clarify how 401(k) fiduciaries can evaluate alternatives, including cryptocurrency and private assets. On November 5, the Department 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 rule will not be finalized until that review is complete. The proposal was issued following an August 2025 executive order by President Trump, "Democratizing Access to Alternative Assets for 401(k) Investors."

The political environment has become more difficult for the proposal following the November midterm elections, in which Democrats won control of both the House and Senate. Congressional Democrats have argued that broader access to alternatives could expose retirement savers to greater risk and more complex products. Senator Elizabeth Warren, D-Massachusetts, a vocal critic of adding alternatives to defined contribution plans, could become chair of the Senate Banking, Housing and Urban Affairs Committee, which would increase her influence over the proposal. Democrats are also expected to increase oversight of the Labor Department's approach. The proposed rule outlines steps fiduciaries should take when considering alternative assets for investment lineups and establishes a process-based safe harbor for selecting designated investment alternatives.

Participants see clear potential benefits: 78% believe private investments can improve 401(k) portfolios through diversification, and 77% see potential for higher returns. Interest comes with restraint on sizing, however. Among the 52% who would invest, 49% would allocate less than 10% of workplace retirement assets to private investments, 39% would allocate between 10% and 15%, 7% would allocate more than 15%, and 5% are unsure. Deb Boyden, head of U.S. defined contribution at Schroders, 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 survey was conducted by 8 Acre Perspective between March 20 and April 15 among 1,500 U.S. investors aged 30 to 79.