Private equity and private debt are starting to catch the attention of everyday retirement savers. Whether they are participating in 401K, 403b or 457 plans, the interest and demand continue to grow.

According to Schroders’ 2025 U.S. Retirement Survey, 45% of participants say they would invest in private assets if they had the option. That's up from 36% just a year ago. What's stands out even more is that 77% say they would increase their plan contributions if private investments were available.

So what does this mean for the industry?

First, there's a clear gap between interest and access. Most plan participants don't expect to see private assets show up in their retirement menus anytime soon. Only 30% think it'll happen in the next five years. And yet, the desire is there — along with cryptocurrency — to diversify and generate higher returns.

While enthusiasm is rising, understanding is still shallow. Just 12% of respondents consider themselves "very knowledgeable" about private investments, and half say private assets sound risky. Most would prefer to dip their toes in the water, as noted in the figures below:

• 51% would allocate less than 10% of workplace retirement assets to private assets
• 36% would allocate between 10-15% of workplace retirement assets to private assets
• 7% are unsure how much they would allocate to private assets
• 6% would allocate more than 15% of workplace retirement assets to private assets

This is where advisors can make a real impact with education and differentiating themselves from everyone else.

Whether or not clients have access to private investments in their 401(k), many are considering it and are hearing about it from family and friends. They may not ask you directly, but they're likely wondering: What are these, and should I care?

Even a brief conversation about the pros, cons, and suitability of private investments can add value. Particularly for Gen X and millennial clients, who are balancing long-term growth goals with a growing appetite for alternatives, clarity matters.

As access to private assets gradually expands in the retirement space, advisors who can speak confidently (and clearly) about them will be better positioned to guide clients through both the opportunities and the limitations.

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