Key Takeaways
- • Empower's survey reveals 96% of workplace retirement plan sponsors would consider adding private market investments to defined contribution (DC) plans, with 72% already engaged in active discussions with advisors about implementation.
- • Financial advisors demonstrate strong adoption of private markets, with 68% of advisors already utilizing private equity, private credit, and other private market investments in client portfolios as of July 2025, and 58% willing to recommend them.
- • Empower is facilitating private market access for its 19 million retirement plan participants through partnerships with multiple private investment fund managers and custodians, with employers required to work through advisors and a managed account platform.
- • The shift toward private market inclusion in retirement plans represents a modernization of DC plan design, addressing growing demand from both plan sponsors and financial professionals for alternative asset exposure within workplace savings vehicles.
Summary
Empower's latest survey findings indicate a pronounced shift in retirement plan strategy among U.S. employers, with nearly universal openness to private market investments. The research reveals that 96% of workplace retirement plan sponsors would likely add private market investments to their defined contribution plans, while 72% are actively discussing these opportunities with financial advisors. This substantial appetite suggests meaningful market expansion in the coming period as plan sponsors move from consideration to implementation.
The advisor community is driving momentum behind this trend. Empower's July 2025 survey of financial advisors found that 68% already utilize private market investments—encompassing private equity, private credit, and related strategies—in client portfolios. Additionally, 58% of advisors indicated willingness to recommend private markets to their clients, signaling conviction among institutional investment professionals that these assets merit inclusion in diversified retirement strategies.
To facilitate this transition, Empower announced in May 2025 that it would enable access to private markets for its 19 million retirement plan participants. The platform operates through relationships with multiple private investment fund managers and custodians, with employers required to work with financial advisors and utilize a managed account infrastructure developed in conjunction with Empower. This infrastructure addresses key implementation challenges, including professional management, custodial oversight, and operational compliance.
The broader context reflects a modernization of defined contribution plan design in response to evolving investor preferences and the demonstrated performance of private markets. As plan sponsors confront pressure to deliver competitive long-term returns and participants seek diversification beyond public equities and fixed income, private market exposure has transitioned from institutional-only territory to mainstream retirement plan consideration. Empower's positioning as an intermediary and technology platform enables smaller to mid-market plan sponsors to access private investment opportunities previously available primarily through larger institutional plans.
The advisor community is driving momentum behind this trend. Empower's July 2025 survey of financial advisors found that 68% already utilize private market investments—encompassing private equity, private credit, and related strategies—in client portfolios. Additionally, 58% of advisors indicated willingness to recommend private markets to their clients, signaling conviction among institutional investment professionals that these assets merit inclusion in diversified retirement strategies.
To facilitate this transition, Empower announced in May 2025 that it would enable access to private markets for its 19 million retirement plan participants. The platform operates through relationships with multiple private investment fund managers and custodians, with employers required to work with financial advisors and utilize a managed account infrastructure developed in conjunction with Empower. This infrastructure addresses key implementation challenges, including professional management, custodial oversight, and operational compliance.
The broader context reflects a modernization of defined contribution plan design in response to evolving investor preferences and the demonstrated performance of private markets. As plan sponsors confront pressure to deliver competitive long-term returns and participants seek diversification beyond public equities and fixed income, private market exposure has transitioned from institutional-only territory to mainstream retirement plan consideration. Empower's positioning as an intermediary and technology platform enables smaller to mid-market plan sponsors to access private investment opportunities previously available primarily through larger institutional plans.
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