Key Takeaways
- • 96% of plan sponsors would likely add private market investments to defined contribution plans if fiduciary and regulatory guidance were clarified, signaling substantial institutional appetite contingent on policy clarity.
- • 72% of employers are actively discussing private market opportunities with advisors and consultants, indicating advanced stages of evaluation across the retirement plan ecosystem.
- • 43% of plan sponsors have already received direct inquiries from participants about private market access, demonstrating bottom-up demand pressure from retirement savers.
- • 98% of surveyed employers report high to moderate understanding of private market investments (private equity, private credit, and private real estate), eliminating knowledge gaps as a primary barrier to adoption.
- • Empower's September 2025 survey aligns with earlier July 2025 findings from financial advisors, where 68% already utilize private markets in client portfolios and 58% would recommend them within retirement plans, creating ecosystem-wide consensus.
Summary
Empower announced survey findings on September 25, 2025, revealing strong employer readiness to incorporate private market investments into defined contribution retirement plans, contingent on regulatory and fiduciary clarity. The survey of plan sponsors demonstrates near-universal willingness: 96% indicated they would likely add private market investments if policy guidance improved. The findings represent the third phase of Empower's multi-stakeholder research, following earlier surveys of plan participants and financial advisors that similarly identified broad ecosystem demand.
Current engagement levels among plan sponsors are substantial. Seventy-two percent are actively discussing private market opportunities with advisors and consultants, while 43% have already fielded direct participant inquiries about access to these assets. Knowledge does not appear to be a constraint—98% of surveyed employers reported high to moderate understanding of private market investments, which Empower defines to include private equity, private credit, and private real estate. Fifty-four percent anticipate that plan participants would be enthusiastic about having such access.
Edmund F. Murphy III, President and CEO of Empower, characterized the employer position as prepared for modernization: "Employers are ready to take the next step in modernizing retirement plans by including private markets, provided the policy environment is clear." The regulatory and fiduciary environment emerged as the critical variable determining adoption, with clarity identified as the prerequisite condition.
The employer survey aligns with Empower's July 2025 advisor research, which found 68% of financial advisors already utilize private market investments in client portfolios, and 58% would recommend them within retirement plans. Among advisors who currently use private markets, 75% would recommend them in retirement plan contexts. This consistency across plan sponsors, participants, and advisors underscores ecosystem-wide alignment on private markets' potential role in retirement outcomes.
Independent research from Cerulli Associates and the Defined Contribution Alternatives Association (DCALTA) supports momentum, with stakeholders across the DC ecosystem developing product and education strategies to meet participant needs through private market solutions.
Current engagement levels among plan sponsors are substantial. Seventy-two percent are actively discussing private market opportunities with advisors and consultants, while 43% have already fielded direct participant inquiries about access to these assets. Knowledge does not appear to be a constraint—98% of surveyed employers reported high to moderate understanding of private market investments, which Empower defines to include private equity, private credit, and private real estate. Fifty-four percent anticipate that plan participants would be enthusiastic about having such access.
Edmund F. Murphy III, President and CEO of Empower, characterized the employer position as prepared for modernization: "Employers are ready to take the next step in modernizing retirement plans by including private markets, provided the policy environment is clear." The regulatory and fiduciary environment emerged as the critical variable determining adoption, with clarity identified as the prerequisite condition.
The employer survey aligns with Empower's July 2025 advisor research, which found 68% of financial advisors already utilize private market investments in client portfolios, and 58% would recommend them within retirement plans. Among advisors who currently use private markets, 75% would recommend them in retirement plan contexts. This consistency across plan sponsors, participants, and advisors underscores ecosystem-wide alignment on private markets' potential role in retirement outcomes.
Independent research from Cerulli Associates and the Defined Contribution Alternatives Association (DCALTA) supports momentum, with stakeholders across the DC ecosystem developing product and education strategies to meet participant needs through private market solutions.
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