Participants generally welcome the use of artificial intelligence (AI) in retirement planning but maintain a strong desire for human intervention.
Many believe that private markets can provide potential growth and diversification in their portfolios, while others are interested but want more information.
About half of participants sought personalized, managed portfolios as the means of integrating private investments over target date funds or direct fund selection.
Our latest Defined Contribution Participant Pulse Survey gathered insights from more than 500 large-plan participants, focusing on two emerging areas: interest in private market investments and perspectives on using artificial intelligence for investing and financial decision-making. We explored differences across key cohorts such as gender, generation, and investor type while also assessing terminology preferences.1
Findings show 36% want private markets included in their plan, and another 50% are interested but need more information on risks and fees. About half prefer personalized portfolios for integrating private investments. While participants see value in AI, concerns remain about privacy and overreliance on technology, and most believe AI should complement, not replace, human advisors.
A combined 86% of participants said they were “definitely interested” or “maybe, depending on risks and fees” in having private market investments included in their DC plan. This level of interest is encouraging for plan sponsors who are considering adding private investments into their DC plan.
Some participants were familiar with private markets, yet we found education is still needed, 29% of participants said they are very familiar with private markets, and 43% said they are somewhat familiar.
In their own words, participants views on private markets:
Female Millennial
Male GenX
Invesco partnered with Ipsos to conduct an online survey of 512 DC plan participants across the US. Respondents worked for large organizations with 1,000+ employees, were actively contributing to a DC plan, and 26 to 65 years old.
Greg Jenkins, CFA®, Managing Director of DC Solutions, and Bill Schories, CIMA®, AIF®, CRPS®, National Sales Director – DCIO, present key findings on private markets and AI in investing.
We explored how participants think and feel about various aspects of their DC plans, including what keeps them up at night, drivers of investing and savings behavior, language preferences, and retirement income.
We explored how participants think and feel about various aspects of their DC plans, including what keeps them up at night, drivers of investing and savings behavior, language preferences, and retirement income.
Our latest defined contribution research surveyed 512 participants from large DC plans to understand how they view an evolving investment landscape. The study explored two key themes driving change: the growing role of private markets in retirement portfolios and the potential for artificial intelligence to support smarter investing and financial decision-making.
FOR DEFINED CONTRIBUTION PLAN SPONSOR USE
NA5023905
About Risk
Alternative strategies may include investments in private equity, private debt, private real estate and infrastructure, which may involve additional risks such as lack of liquidity and concentrated ownership. These types of investments may result in greater fluctuation in the value of a portfolio. Private Market investments are exposed to the risk that a counterpart is unable to deal with its obligations. Changes in interest rates, rental yields and general economic conditions may result in fluctuations in the value of any underlying strategies. These types of strategies may carry a significant risk of capital loss and other market risks.
A target date fund identifies a specific time at which investors are expected to begin making withdrawals, e.g., now, 2025, 2030. The principal value of the fund is not guaranteed at any time, including at the target date.
Important Information
Participant quotes used with permission. Invesco is not affiliated with Ipsos.
This material is for illustrative, informational and educational purposes only. If the illustrations herein are used outside of the designated audience, it is the respective user’s responsibility to ensure that such material complies with all applicable regulations and is filed with the appropriate regulatory bodies if so required. Words and phrases utilized should always be appropriate, applicable and provable. We make no guarantee that participation in this program or utilization of any of its content will result in increased business or higher participant rates.
The opinions expressed are subject to change without notice.
These opinions may differ from those of other Invesco investment professionals.
This is not intended to be legal or tax advice or to offer a comprehensive resource for tax-qualified retirement plans. Any products referenced are not intended to represent any specific Invesco products. This is provided for informational purposes only and is not to be construed as an offer to buy or sell any financial instruments.
This link takes you to a site not affiliated with Invesco. The site is for informational purposes only. Invesco does not guarantee nor take any responsibility for any of the content.
