Invesco Defined Contribution Survey Reveals Plan Participants are Open to Private Markets and AI Alongside Greater Education and Control
Invesco Defined Contribution Survey Reveals Plan Participants are Open to Private Markets and AI Alongside Greater Education and Control |
| [21-September-2026] |
ATLANTA, Sept. 21, 2026 /PRNewswire/ -- Invesco announced findings from its Summer 2026 Defined Contribution (DC) Participant Pulse Survey, revealing that retirement plan participants are open to both private market investments and artificial intelligence (AI), but their comfort with these innovations depends heavily on education, transparency, and human oversight.
The research builds on Invesco's Winter 2026 DC Participant Pulse Survey, which found that 86% of participants were either "definitely interested" or open to having private market investments included in their workplace retirement plan, pending more information on risks and fees. For the Summer 2026 survey, Invesco partnered with Ipsos to survey 517 DC plan participants in the U.S. who worked for large organizations with 1,000+ employees. Participants showed broad awareness of private markets, with 93% agreeing these investments typically carry higher fees and potentially higher returns and, among those, 58% view that trade-off positively. Yet understanding remains uneven. Risk tolerance emerged as the leading factor shaping participants' openness to private markets. "Our findings show participants are interested in private markets, but education is critical to building comfort," said Frank Dotro, Head of North America Institutional & Retirement at Invesco. "Plan sponsors need to pair thoughtful investment design with clear, practical education to help participants understand the role private markets can play in a retirement portfolio." Among private market strategies, participants expressed interest in private lending, infrastructure, real estate, and private equity. Participants were also receptive to accessing private markets through professionally managed retirement solutions, with 65% expressing interest in a target date fund with a modest private markets allocation. "The inclusion of private markets in defined contribution plans provides participants with access to investment opportunities that have historically been limited," said Keith Jones, Global Head of Private Markets Product at Invesco. "As the industry continues to evolve, thoughtfully integrating private markets into professionally managed solutions can help participants better understand both the opportunities and considerations associated with these investments." Participants were also open to AI in retirement planning but strongly preferred a "copilot" model that combines technology with human involvement. Most were comfortable with AI playing a role in technical functions such as portfolio monitoring, rebalancing, and risk assessment, with a preference for greater human involvement in planning and goal setting. Control remains critical: 97% said the ability to set boundaries on AI's investment decisions was at least somewhat important, with 70% labelling it very important. "As AI becomes more integrated into financial services, participants are demonstrating a thoughtful approach to adoption," said Mr. Dotro. "They're not looking for technology to replace the human elements of retirement planning. Instead, they're identifying opportunities where the technology can enhance efficiency, provide additional insights, and help simplify complex decisions." Invesco's Summer 2026 Defined Contribution Participant Pulse Survey provides plan sponsors and retirement professionals with insights into how participants view private markets and AI, including the education, communication, and guardrails that can help build understanding and confidence. About Invesco Private Markets About Invesco Ltd. Invesco Advisers, Inc. provides investment advisory services to individual and Institutions and is an indirect, wholly owned subsidiary of Invesco Ltd. NA5906959 Contact: Matthew Chisum | 212-652-4368 | matthew.chisum@invesco.com
SOURCE Invesco Ltd. | ||
Company Codes: NYSE:IVZ |
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