Invesco Survey Highlights Participants' Willingness to Embrace Private Markets and AI for Retirement Plans
In a revealing report from the Summer 2026 Defined Contribution (DC) Participant Pulse Survey, Invesco has unveiled that retirement plan participants are increasingly open to diversifying their investments through private markets and incorporating artificial intelligence (AI) into their retirement planning. However, their comfort level with these innovative tools heavily relies on adequate education and a clear understanding of associated risks and benefits.
This insightful survey follows from a similar study conducted in Winter 2026, where it was noted that a significant 86% of participants expressed a definite interest or a willingness to consider private market investments as part of their workplace retirement plan. Importantly, this interest is contingent on the availability of comprehensive information regarding the risks and incurred fees.
The Summer survey was conducted in partnership with Ipsos and involved 517 DC plan participants from U.S. companies with over 1,000 employees. The results were enlightening, showcasing that 93% of respondents acknowledged that private market investments typically involve higher fees but may offer potentially higher returns, with 58% viewing the associated trade-offs positively.
Despite this general awareness, a notable discrepancy in understanding individual risk tolerance emerged as the predominant factor influencing participants’ openness to the idea of private markets. "Our findings indicate a genuine interest in these investment avenues, but building comfort through education is paramount," emphasizes Frank Dotro, Head of North America Institutional Retirement at Invesco. "Plan sponsors must ensure that they combine thoughtful investment designs with clear and practical educational initiatives to guide participants on how private markets can fit into their retirement portfolios."
The survey further highlights specific areas of private market investment that attract participants' attention, including private lending, infrastructure, real estate, and private equity. Interestingly, 65% of participants indicated they would be interested in target date funds that include a moderate allocation to private markets, showcasing an appetite for professionally managed retirement solutions that integrate these investments.
Keith Jones, Global Head of Private Markets Product at Invesco, remarked on this trend, stating that the inclusion of private markets in defined contribution plans offers participants unique investment opportunities that have historically been more limited. He stresses the importance of thoughtful integration of private markets within professionally managed solutions, allowing participants to gain a clearer understanding of both the opportunities and challenges these investments present.
Invesco's survey also revealed that participants are receptive to the utilization of AI in their retirement planning processes. However, they expressed a clear preference for a 'copilot' model, which denotes a balanced approach that combines technological capability with human oversight. Many participants were comfortable with AI undertaking technical tasks such as portfolio monitoring, rebalancing, and risk assessments, yet they favored increased human involvement in strategic planning and goal setting.
The survey results highlighted that maintaining control is critical; a staggering 97% of participants deemed it somewhat important to impose boundaries on AI's investment decisions, while 70% classified this need as very important. "As AI becomes increasingly intertwined with financial services, participants are demonstrating a discerning approach to its adoption," stated Dotro. "They are not seeking AI to replace human elements in retirement planning but are instead eager to identify opportunities where technology can enhance efficiency, provide deeper insights, and help simplify complex decision-making processes."
In summary, the findings from Invesco’s Summer 2026 Defined Contribution Participant Pulse Survey deliver essential insights for plan sponsors and retirement professionals, illuminating how participants perceive private markets and AI. Additionally, the survey underscores the critical need for effective education, transparent communication, and structured guidelines to nurture understanding and foster confidence among participants navigating these evolving investment landscapes.
Invesco Private Markets is recognized as a global leader in private real estate, private credit, and alternative investment offerings. Their mission is to aid investors in establishing resilient portfolios while unlocking new growth opportunities. With over 40 years of industry experience, Invesco Private Markets offers innovative strategies, simplified access, and extensive investor education, catering to wealth management, retirement, and institutional clients. As of June 30, 2026, Invesco Private Markets manages an impressive $135 billion in assets under management (AUM).
Invesco Ltd. stands out as one of the world's foremost asset management firms, providing services to clients across more than 120 countries. With assets under management totaling US$2.5 trillion as of June 30, 2026, Invesco delivers a comprehensive spectrum of investment strategies covering public, private, active, and passive solutions. The firm’s collaborative ethos, coupled with its extensive range of services and global outreach, positions it optimally to assist both retail and institutional investors in tackling challenges and discovering new avenues for success.
This insightful survey follows from a similar study conducted in Winter 2026, where it was noted that a significant 86% of participants expressed a definite interest or a willingness to consider private market investments as part of their workplace retirement plan. Importantly, this interest is contingent on the availability of comprehensive information regarding the risks and incurred fees.
The Summer survey was conducted in partnership with Ipsos and involved 517 DC plan participants from U.S. companies with over 1,000 employees. The results were enlightening, showcasing that 93% of respondents acknowledged that private market investments typically involve higher fees but may offer potentially higher returns, with 58% viewing the associated trade-offs positively.
Despite this general awareness, a notable discrepancy in understanding individual risk tolerance emerged as the predominant factor influencing participants’ openness to the idea of private markets. "Our findings indicate a genuine interest in these investment avenues, but building comfort through education is paramount," emphasizes Frank Dotro, Head of North America Institutional Retirement at Invesco. "Plan sponsors must ensure that they combine thoughtful investment designs with clear and practical educational initiatives to guide participants on how private markets can fit into their retirement portfolios."
The survey further highlights specific areas of private market investment that attract participants' attention, including private lending, infrastructure, real estate, and private equity. Interestingly, 65% of participants indicated they would be interested in target date funds that include a moderate allocation to private markets, showcasing an appetite for professionally managed retirement solutions that integrate these investments.
Keith Jones, Global Head of Private Markets Product at Invesco, remarked on this trend, stating that the inclusion of private markets in defined contribution plans offers participants unique investment opportunities that have historically been more limited. He stresses the importance of thoughtful integration of private markets within professionally managed solutions, allowing participants to gain a clearer understanding of both the opportunities and challenges these investments present.
Invesco's survey also revealed that participants are receptive to the utilization of AI in their retirement planning processes. However, they expressed a clear preference for a 'copilot' model, which denotes a balanced approach that combines technological capability with human oversight. Many participants were comfortable with AI undertaking technical tasks such as portfolio monitoring, rebalancing, and risk assessments, yet they favored increased human involvement in strategic planning and goal setting.
The survey results highlighted that maintaining control is critical; a staggering 97% of participants deemed it somewhat important to impose boundaries on AI's investment decisions, while 70% classified this need as very important. "As AI becomes increasingly intertwined with financial services, participants are demonstrating a discerning approach to its adoption," stated Dotro. "They are not seeking AI to replace human elements in retirement planning but are instead eager to identify opportunities where technology can enhance efficiency, provide deeper insights, and help simplify complex decision-making processes."
In summary, the findings from Invesco’s Summer 2026 Defined Contribution Participant Pulse Survey deliver essential insights for plan sponsors and retirement professionals, illuminating how participants perceive private markets and AI. Additionally, the survey underscores the critical need for effective education, transparent communication, and structured guidelines to nurture understanding and foster confidence among participants navigating these evolving investment landscapes.
About Invesco Private Markets
Invesco Private Markets is recognized as a global leader in private real estate, private credit, and alternative investment offerings. Their mission is to aid investors in establishing resilient portfolios while unlocking new growth opportunities. With over 40 years of industry experience, Invesco Private Markets offers innovative strategies, simplified access, and extensive investor education, catering to wealth management, retirement, and institutional clients. As of June 30, 2026, Invesco Private Markets manages an impressive $135 billion in assets under management (AUM).
About Invesco Ltd.
Invesco Ltd. stands out as one of the world's foremost asset management firms, providing services to clients across more than 120 countries. With assets under management totaling US$2.5 trillion as of June 30, 2026, Invesco delivers a comprehensive spectrum of investment strategies covering public, private, active, and passive solutions. The firm’s collaborative ethos, coupled with its extensive range of services and global outreach, positions it optimally to assist both retail and institutional investors in tackling challenges and discovering new avenues for success.
Topics Financial Services & Investing）
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