Invesco Defined Contribution Survey Reveals Plan Participants are Open to Private Markets and AI Alongside Greater Education and Control

Surveyed DC plan participants show interest in private markets and AI but want education, transparency and strong human control over new tools.

Rhea-AI Summary

Invesco (IVZ) released results from its Summer 2026 Defined Contribution Participant Pulse Survey, showing U.S. retirement plan participants are broadly open to private markets and artificial intelligence, provided there is strong education, transparency, and human oversight.

The survey, conducted with Ipsos among 517 DC participants at large employers, follows a Winter 2026 study where 86% were definitely interested or open to private markets if better informed on risks and fees. In the latest survey, 93% agreed private markets typically carry higher fees and potentially higher returns, and 58% viewed that trade-off positively. Participants showed interest in private lending, infrastructure, real estate, and private equity, and 65% were interested in target date funds with modest private market allocations.

On AI, respondents favored a “copilot” model: most accepted AI for technical tasks while preferring humans for planning and goals. Control was central, with 97% saying the ability to set boundaries on AI decisions was at least somewhat important and 70% calling it very important.

Market Context

IVZ's pre-publication gain was 1.03%, while its August AUM report listed $136.6 billion in private m...

Analysis

IVZ's pre-publication gain was 1.03%, while its August AUM report listed $136.6 billion in private markets; the survey added context to existing private-markets exposure, not a post-news reaction.

Key Figures

Private-market interest: 86% Survey participants: 517 participants Higher-fee awareness: 93% +4 more

Private-market interest

86%

Winter 2026 DC Participant Pulse Survey

Survey participants

517 participants

Summer 2026 U.S. DC participant survey

Higher-fee awareness

93%

Participants agreeing private markets typically carry higher fees and potentially higher returns

Positive fee-return trade-off

58%

Among participants recognizing higher fees and potentially higher returns

Target-date fund interest

65%

Interest in a target-date fund with a modest private-markets allocation

AI decision boundaries

97%

Participants saying boundaries on AI investment decisions were at least somewhat important

Strong AI control preference

70%

Participants labeling boundaries on AI investment decisions very important

Historical Context

1 past event · Latest: Sep 10

1 event

1. Sep 10

   AUM update

   24h Move

   +1.1%

   Reported $2,562.1 billion AUM, including $136.6 billion in private markets.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

private markets, defined contribution, target date fund

3 terms

private markets financial

"participants are open to both private market investments and artificial intelligence"

Private markets are places where investors buy and sell ownership in companies, debt, or assets that are not listed on public stock exchanges — think direct stakes in a start-up, private company, real estate project, or loan. They matter to investors because these deals can offer higher potential returns and diversification but come with less transparency, limited ability to sell quickly, and more uncertainty, like owning a whole house versus trading shares of a real estate fund.

defined contribution financial

"findings from its Summer 2026 Defined Contribution (DC) Participant Pulse Survey"

A defined contribution plan is a retirement savings arrangement where the amount put into an employee’s account is fixed by a formula or contribution schedule, but the final payout depends on how the invested money performs. Think of it as a personal savings pot that grows or shrinks with market returns; for investors, it matters because companies offering these plans have more predictable short-term costs but shift long-term retirement risk onto employees, affecting corporate liabilities, cash flow and workforce stability.

target date fund financial

"interest in a target date fund with a modest private markets allocation"

A target date fund is an investment fund designed to automatically change the mix of stocks, bonds and cash over time based on a chosen target year—usually the year you plan to retire. It matters to investors because it acts like an autopilot for risk: early on it favors growth with more stocks, then gradually shifts toward safer investments, simplifying saving decisions while exposing you to the fund’s chosen risk path and fees.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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 Private Markets Invesco Private Markets is a global leader in private real estate, private credit, and alternative investment solutions, helping investors create resilient portfolios and unlock new opportunities. With more than four decades of experience, the platform delivers innovative strategies, streamlined access, and investor education for wealth management, retirement, and institutional clients. Invesco Private Markets manages $135 billion in AUM as of June 30, 2026.

About Invesco Ltd. 
Invesco Ltd. is one of the world's leading asset management firms serving clients in more than 120 countries. With US$2.5 trillion in assets under management as of June 30, 2026, we deliver a comprehensive range of investment capabilities across public, private, active, and passive. Our collaborative mindset, breadth of solutions and global scale mean we're well positioned to help retail and institutional investors rethink challenges and find new possibilities for success. For more information, visit www.invesco.com.

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
               Brianna Stokes | 212-323-4588 | brianna.stokes@invesco.com

 

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SOURCE Invesco Ltd.