Majority signal readiness to recommend private markets in retirement plans if regulations evolve
More than two-thirds of financial advisors are already using private market investments, and many are ready to bring them into retirement plans.
Empower’s July 2025 survey found that 68 percent of advisors incorporate private equity, private real estate, and private credit, most often in wealth-advised or high-net-worth accounts.
Of those currently using these investments, 58 percent would recommend them within retirement plans. That number rises to 75 percent for advisors also serving pension or defined benefit plans.
In total, 43 percent of all advisors surveyed expressed interest in such recommendations, pointing to a growing shift toward private markets in retirement planning.
Survey respondents identified diversification (62 percent), higher return potential (48 percent), and lower correlation to public markets (48 percent) as the main benefits. Challenges cited included liquidity (68 percent), fees (48 percent), and investment complexity (33 percent).
Additionally, 66 percent said greater ERISA and regulatory clarity would make them more likely to recommend private markets in retirement plans.
Edmund Murphy III, president and CEO of Empower, said private markets are not a niche segment of the investment landscape.
With most US companies privately held and trillions of dollars already invested, he noted that expanding access through defined contribution plans offers a significant opportunity to strengthen long-term retirement outcomes.
He added that aligning the 401(k) system with private market investing brings the US retirement system closer to international and defined benefit models.
Murphy also said that as regulatory guidance evolves, advisors will play a key role in helping plan sponsors evaluate private investment options.
He suggested that professionally managed accounts and prudent exposure limits could help mitigate risks while expanding access to a wider range of investments.
