Private Assets in 401(k)s: Savers' Interest Is Rising

TL;DR: More than half of workplace retirement plan participants, 52%, say they would invest in private equity and private debt if their plan offered it, according to a Schroders survey reported by InvestmentNews. That is up from 36% in 2024. Understanding of these assets lags, and plan sponsors still control access.

InvestmentNews reported the results of the new survey. Schroders found that 52 percent of participants in 401(k), 403(b), and 457 plans say they would invest in private equity and private debt if their employer plan provided access. The research firm 8 Acre Perspective ran the poll among 1,500 U.S. investors aged 30 to 79, including 615 plan participants, between March 20 and April 15, 2026.

That is a self-reported intention from 615 people, not a measure of what anyone has bought. The trend still matters, because it has moved in one direction for three years.

How fast has interest in private assets grown?

The share has climbed from 36% in 2024 to 45% in 2025 to 52% this year, according to InvestmentNews. The 2024 figure matches what the National Association of Plan Advisors (NAPA) reported from the earlier Schroders survey, where more than a third (36%) said they would invest if their plan provided access.

Survey year	Share who would invest if offered	Source
2024	36%	NAPA
2025	45%	InvestmentNews
2026	52%	InvestmentNews

The jump from 2025 to 2026 is seven points. NAPA reported in 2024 that inclusion of alternatives on plan menus remains limited, so demand is running ahead of supply.

Why are savers interested?

The survey points to two beliefs. Of plan participants, 78 percent believe private assets can improve 401(k) portfolios through diversification, and 77 percent say they offer a pathway to greater investment returns, InvestmentNews reports.

Both are beliefs about the future, and the survey doesn't test them. Vanguard's October 2025 research models a 10%–20% private allocation inside a target-date fund and finds it could, over 40 years, boost retirement wealth by 7%–22% after fees. That is a modeled range under stated assumptions, not a record of results.

Do savers understand what they would be buying?

Not well, by their own account. In the 2025 Schroders survey, just 12% of plan participants considered themselves very knowledgeable about private assets, while 30% were not too knowledgeable and 18% not at all. The 2024 survey found 64% said alternative investments sound risky, and in a report Yahoo Finance published in August 2025, more than half (53%) still thought private assets sound risky.

So the same people who want access also call the assets risky, and most admit they don't know them well. That gap is where the cost hides. A private fund usually carries layered fees, which means you pay the manager before you see a return. It also limits how often you can sell, and it values its holdings on a lag rather than at a live price. Think of it as an index fund with the exit door partly bolted shut and a bigger bill at the register.

Access is not an edge. Judgment is. Reading the fee schedule and the redemption terms is the part no menu does for you.

What does this mean if you're already accredited?

You can likely reach private funds directly today, and you choose the manager, read the documents and decide the size. A 401(k) route works differently. Your plan sponsor picks what goes on the menu, and you choose only from that list. For you, the question isn't whether the option exists. It's whether a menu-picked fund beats one you vetted yourself, and whether tax-deferred money is the right place to hold something you can't easily sell.

What is the regulatory backdrop?

In March 2026, the Department of Labor proposed a regulation that would set safe harbors for plan fiduciaries choosing alternative investment options, per InvestmentNews. A safe harbor matters because employers fear lawsuits. If a plan sponsor can follow a set process and be protected, it is far more willing to add a harder-to-value fund.

That fear is not abstract. The Intel 401(k) case before the Supreme Court tests how fiduciaries get judged when a plan holds private funds that lag. Managers are already building for the opening, as Carlyle's move to bring private markets to 401(k)s shows. Our earlier piece on the regulatory push behind 401(k) access to private markets covers the policy side in full. Saver demand alone won't put private assets on a menu.

Savers themselves are unsure when that might happen. In 2025, fewer than one-third of participants (30%) expected private assets to be available in their plan within five years, and 47% were unsure.

How much would savers put in?

Most say a small slice. In the Schroders survey Yahoo Finance reported in August 2025, among those who would invest, about half would allocate less than 10%, 36% would allocate between 10% and 15%, and 6% would allocate more than 15%. Yahoo Finance's Kerry Hannon wrote that most advisers she spoke to suggested keeping allocations to a maximum of 5% to 10% to start.

Those are guideposts, not rules.

Common mistakes

The first mistake is reading stated interest as a purchase. A person who tells a pollster they'd invest hasn't read a fund document or seen a fee schedule.

The second is treating a 401(k) wrapper as a safety feature. A private fund inside a plan is still a private fund with lockups, valuation lags and fees, and our look at private credit ETFs and the liquidity illusion shows how promised liquidity can break under stress.

FAQ

How many Americans want private assets in their 401(k)? Schroders found 52% of participants in 401(k), 403(b) and 457 plans would invest in private equity and private debt if their plan offered it, per InvestmentNews. The sample was 615 plan participants.

Are private assets already in most 401(k) plans? The sources here give no adoption figure. NAPA noted that inclusion of alternatives on plan menus remains limited, and many savers don't have the access the survey asks about.

What share of savings would people put into private assets? In the Schroders survey Yahoo Finance reported in August 2025, about half of interested participants would allocate less than 10%, and 6% would allocate more than 15%. Advisers quoted there suggested starting at 5% to 10% at most.

Would savers contribute more if private assets were offered? In 2025, more than three-in-four (77%) of interested participants said they would increase their contribution, according to Schroders.

What to do today

Find your plan's current fund menu and ask your plan administrator in writing whether a private equity or private debt option is under review. If one arrives, ask for the fee schedule, the redemption terms and how the fund is valued before you decide anything. And if you'd like this kind of read on private markets each week, the free AIN briefing is where we send it.

Educational content only. Not investment, tax, or legal advice. Not an offer or solicitation to buy or sell securities. Past performance does not guarantee future results. Private-market investments are illiquid and involve risk of loss, including total loss of capital. Consult qualified advisers. Angel Investors Network is not a broker-dealer or investment adviser.