Schroders Study Finds Nearly Half of Retirement Plan Participants Would Invest in Private Assets
NEW YORK, August 25, 2025–(BUSINESS WIRE)–According to the Schroders 2025 US Retirement Survey, 45% of investors participating in 401k, 403b or 457 workplace retirement savings plans say they would invest in private equity and private debt investments if their plan provided access to these assets – up from 36% in 2024. Further, among plan participants who would invest in private assets, if offered, more than three-in-four (77%) would increase their contribution to their retirement savings plan.
Despite this growing demand, less than one-third of participants (30%) expect private assets to be available in their retirement plan within the next five years, 47% are unsure, and 23% don’t anticipate their plan menu will include private asset investments before 2030.
“For decades, traditional pension plan portfolios have mixed public and private investments in the same portfolio to meet their obligations to retirees,” said Deb Boyden, Head of US Defined Contribution, Schroders. “On the heels of the recent executive order directing the Labor Department to consider improving access to alternative assets for defined-contribution retirement plan participants, a wider range of employees may soon be able to combine the benefits of both asset classes to better prepare for retirement.”
Among all plan participants who would invest in private assets through their workplace retirement savings plan, a gradual approach to allocations is preferred:
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51% would allocate less than 10% of workplace retirement assets to private assets
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36% would allocate between 10-15% of workplace retirement assets to private assets
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6% would allocate more than 15% of workplace retirement assets to private assets
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7% are unsure how much they would allocate to private assets
Notably, while 78% of plan participants say private assets can enhance 401k portfolios through diversification and 73% believe private assets provide the opportunity for greater investment return, more than half (53%) say private assets sound risky.
Further highlighting the need for more education, just 12% of plan participants consider themselves very knowledgeable about private assets, 40% are somewhat knowledgeable, 30% are not too knowledgeable, and 18% are not at all knowledgeable.
Boyden added, “It’s no secret that most investors are not very knowledgeable about private assets. To date, access to private markets in the U.S. has been restricted to institutions and ultra-high net worth investors, so there hasn’t been a reason for most investors to gain a better understanding of the asset class. As the traditional barriers to entry are removed and access is potentially improved through defined contribution plans and other investment vehicles, the quality and quantity of investor education resources must improve.”
About the Survey
The Schroders 2025 US Retirement Survey was conducted by 8 Acre Perspective among 1,500 US investors nationwide ages 29-79, including 602 currently participating in a workplace retirement plan, from March 25 to April 17 in 2025.
For more information visit the Schroders 2025 US Retirement Survey.
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Schroders plc
Schroders is a global investment manager which provides active asset management, wealth management and investment solutions, with £776.6 billion (€906.6 billion; $1,064 billion) of assets under management at 30 June 2025. As a UK listed FTSE100 company, Schroders has a market capitalisation of circa £6 billion and over 6,000 employees across 38 locations. Established in 1804, Schroders remains true to its roots as a family-founded business. The Schroder family continues to be a significant shareholder, holding approximately 44% of the issued share capital.
Schroders’ success can be attributed to its diversified business model, spanning different asset classes, client types and geographies. The company offers innovative products and solutions through four core business divisions: Public Markets, Solutions, Wealth Management, and Schroders Capital, which focuses on private markets, including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate.
Schroders aims to provide excellent investment performance to clients through active management. This means directing capital towards resilient businesses with sustainable business models, consistently with the investment goals of its clients. Schroders serves a diverse client base that includes pension schemes, insurance companies, sovereign wealth funds, endowments, foundations, high net worth individuals, family offices, as well as end clients through partnerships with distributors, financial advisers, and online platforms.
Important Information:
All investments involve risk including the loss of principal. The views shared are those of the author or individual(s) quoted and may not reflect the views of Schroders Plc or any of its affiliates. Investments in private assets are only available to qualified investors. Forward looking views and forecast may not be realized. Any mention of countries, industries, sectors or securities is for informational purposes only and should not be interpreted as a recommendation to invest in or divest from any asset. No responsibility can be accepted for errors of facts obtained from third parties. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions.
Schroder Investment Management North America Inc., 7 Bryant Park, New York NY 10018-3706. CRD Number 105820. Registered as an investment adviser with the US Securities and Exchange Commission (SEC).
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Contacts
For further information:
Jennifer Manser
Head of Corporate Communications, North America
212.632.2947
jennifer.manser@schroders.com