Key Takeaways
- • 96% of plan sponsors would likely add private market investments to defined contribution plans if fiduciary and regulatory guidance were clarified, according to a new Empower survey of 205 private sector 401(k)/403(b) benefits administrators conducted August 21-28, 2025.
- • 72% of plan sponsors are actively discussing private market opportunities with advisors and consultants, indicating substantial momentum toward implementation beyond sentiment alone.
- • 43% of plan sponsors have already fielded participant inquiries about private asset access, and 54% anticipate participants would be enthusiastic about such offerings, demonstrating emerging demand from beneficiaries.
- • Empower launched a groundbreaking program in May 2025 enabling private market investments through collective investment trusts (CITs) aligned with top-tier asset managers, covering private equity, private credit, and private real estate—positioning the recordkeeper as a first-mover in operationalizing this shift.
- • Regulatory clarity emerges as the critical enabler, with the Department of Labor providing guidance that fiduciaries can include private-equity funds in retirement plans, though plan sponsors emphasize that regulatory guidance alone is insufficient without operational and fiduciary support.
Summary
Plan sponsors demonstrate overwhelming readiness to integrate private market investments into workplace retirement plans, contingent on improved regulatory and fiduciary clarity. The Empower survey, conducted by The Harris Poll among 205 private sector benefits administrators in late August 2025, reveals that 96% of respondents would likely add private market investments if such guidance were clarified—signaling a structural shift in defined contribution plan design.
Beyond expressed willingness, the survey captures tangible momentum: 72% of plan sponsors are actively engaging advisors and consultants on private market opportunities, while 43% report they have already received participant inquiries about private asset access. These metrics suggest demand is not merely aspirational but operationalizing across the industry. Additionally, 54% of respondents anticipate participants would be enthusiastic about such offerings, and 98% claim moderate to high understanding of private market investments, indicating plan sponsors possess foundational knowledge to proceed.
Empower, a major retirement recordkeeper, has positioned itself at the forefront of this transition. In May 2025, the firm announced a groundbreaking program enabling private market investments through collective investment trusts (CITs), partnering with leading asset managers to deliver diversified exposure to private equity, private credit, and private real estate. This infrastructure development directly addresses the operational gap between regulatory permission and practical implementation. Edmund F. Murphy III, President and CEO of Empower, framed the moment as one of "modernizing retirement plans" in alignment with both participant and advisor demand.
The enabling environment includes recent Department of Labor guidance confirming that retirement plan fiduciaries can include private-equity funds in their portfolios. However, industry observers including Morningstar note that regulatory guidance alone is insufficient; plan sponsors require comprehensive fiduciary support, participant education, and operational infrastructure. The survey underscores this reality: while regulatory clarification is necessary, plan sponsors simultaneously demand clarity on fiduciary responsibilities, manager selection, valuation, and ongoing performance monitoring before scaling private market allocations in DC plans.
This convergence of participant demand (Empower separately reported in July that over 70% of American workers want private asset access in retirement), plan sponsor readiness, advisor engagement, and regulatory opening positions private markets as a likely fixture in mainstream 401(k) and 403(b) plans within the next 12-24 months, contingent on continued clarity from policymakers and operational maturation from service providers.
Beyond expressed willingness, the survey captures tangible momentum: 72% of plan sponsors are actively engaging advisors and consultants on private market opportunities, while 43% report they have already received participant inquiries about private asset access. These metrics suggest demand is not merely aspirational but operationalizing across the industry. Additionally, 54% of respondents anticipate participants would be enthusiastic about such offerings, and 98% claim moderate to high understanding of private market investments, indicating plan sponsors possess foundational knowledge to proceed.
Empower, a major retirement recordkeeper, has positioned itself at the forefront of this transition. In May 2025, the firm announced a groundbreaking program enabling private market investments through collective investment trusts (CITs), partnering with leading asset managers to deliver diversified exposure to private equity, private credit, and private real estate. This infrastructure development directly addresses the operational gap between regulatory permission and practical implementation. Edmund F. Murphy III, President and CEO of Empower, framed the moment as one of "modernizing retirement plans" in alignment with both participant and advisor demand.
The enabling environment includes recent Department of Labor guidance confirming that retirement plan fiduciaries can include private-equity funds in their portfolios. However, industry observers including Morningstar note that regulatory guidance alone is insufficient; plan sponsors require comprehensive fiduciary support, participant education, and operational infrastructure. The survey underscores this reality: while regulatory clarification is necessary, plan sponsors simultaneously demand clarity on fiduciary responsibilities, manager selection, valuation, and ongoing performance monitoring before scaling private market allocations in DC plans.
This convergence of participant demand (Empower separately reported in July that over 70% of American workers want private asset access in retirement), plan sponsor readiness, advisor engagement, and regulatory opening positions private markets as a likely fixture in mainstream 401(k) and 403(b) plans within the next 12-24 months, contingent on continued clarity from policymakers and operational maturation from service providers.
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