Firm highlights growing worker interest in private markets access, describes framework for integration with defined contribution plans

Empower has formally responded to an inquiry from U.S. Senator Elizabeth Warren regarding the inclusion of private market investments in defined contribution retirement plans. In its response, Empower emphasized the importance of evolving the retirement system to offer carefully regulated access to private equity, credit, and real estate investments for everyday savers.

“The retirement landscape is changing, and it’s clear that limiting access to private markets in defined contribution plans no longer serves the best interests of American workers,” said Edmund F. Murphy III, President and CEO of Empower. “To deliver stronger, more diversified retirement outcomes, we must thoughtfully remove these barriers. Empower is committed to leading this evolution with the necessary safeguards and fiduciary rigor to protect and advance the interests of millions of savers.”

Public Market Contraction Signals Need for Broader Access

The U.S. has seen a nearly 50% decline in the number of publicly listed companies since the 1990s. Meanwhile, the global private equity market has grown to over $13 trillion, capturing the majority of early-stage growth that everyday investors increasingly cannot access through traditional retirement plans.

Empower’s research, conducted in June 2025, reveals strong support from American workers for access to private markets in their 401(k) plans:

• 79% believe retail investors should have access to the same investment products as institutions.
• 76% want their employers or 401(k) providers to offer modern investment options.
• 72% believe private market exposure could improve long-term retirement outcomes.
• 73% say it would help level the playing field for everyday investors.

Empower’s Approach: Safeguarded and Fiduciary-Led

Empower’s proposal outlines a framework that prioritizes participant protection and fiduciary oversight:

• Employer vetting: Private investments can only be included if plan fiduciaries determine they meet ERISA’s prudent standard.
• Advisor accountability: All investment managers advising to private investments must be ERISA-compliant and act in participants’ best interests.
• Portfolio design safeguards: Exposure to private markets is limited within diversified investment vehicles to control risk.

“This is not about opening the floodgates,” Murphy continued. “It’s about providing secure, professionally managed options that reflect where the markets—and the opportunities—are today.”

A Call for Public-Private Collaboration

Empower concluded its response by emphasizing that progress in the U.S. retirement system has always come from cooperation between the public and private sectors.

“Retirement security should evolve with the economy,” Murphy said. “Just as we embraced innovations like index funds and auto-enrollment, we now need to thoughtfully expand the investment universe. We look forward to working with policymakers and regulators to do so responsibly.”

Sources: Doidge et al. (2017); SEC (2020); McKinsey (2024); PitchBook (2024). Full survey results available upon request.

About Empower

Recognized as the second-largest retirement services provider in the U.S.¹ by total participants, Empower administers more than $1.8 trillion in assets for 19 million investors² through the provision of retirement plans, advice, wealth management, and investments. Connect with us on empower.com, Facebook, X, LinkedIn, TikTok, and Instagram.

1. Pensions & Investments DC Recordkeeper Survey (2024). Ranking measured by total number of participants as of December 31, 2023.
2. As of March 31, 2025. Assets under administration (AUA) refers to the assets administered by Empower. AUA does not reflect the financial stability or strength of a company.

Empower refers to the products and services offered by Empower Annuity Insurance Company of America (EAICA) and its subsidiaries. “EMPOWER” and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America.

The information contained herein is being provided for discussion purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy or sell securities. All visuals are illustrative only.

Private equity investments are not appropriate for all investors and come with higher risks and fees. Empower assesses an individual’s financial situation, investment objectives, risk tolerance, time horizon, liquidity needs, and investment knowledge to determine if such investments are appropriate and require the investor to be an Accredited Investor.

©2025 Empower Annuity Insurance Company of America. All rights reserved. RO-4641028-0725

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To learn more about how we’re empowering plan sponsors and their participants to be more engaged in their retirement plans than ever before, call us at 800-719-9914.

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