Retirement Savers Want Private Assets: Here’s What That Means (and How to Do It Safely)

If you’ve felt the itch to add something beyond stocks and bonds to your retirement plan, you’re not alone. A new survey highlighted by Yahoo Finance https://apple.news/AbUQsihd7RrmPZXxTzg0JhA

 shows nearly half of 401(k) participants say they would invest in private assets like private credit, private real estate, or private equity, if their plans offered it. That’s a big signal: everyday savers are ready for more choice and better diversification.  

Under the hood, this interest reflects a broader shift. The 2025 Schroders U.S. Retirement Survey (1,500 investors, ages 29–79) found robust curiosity about private markets as people look for steadier income, diversification, and potential long-term returns paired with a growing awareness that traditional, public-market-only portfolios can be limiting.  

Why the Pivot to “Private”?

Two reasons keep coming up in conversation with investors:

1. Diversification that actually feels different. Private real-estate-backed income or private credit can behave differently than the S&P 500, which helps smooth the ride.

2. Income and outcomes. For many retirees and pre-retirees, predictable income matters more than chasing the latest growth story.

At the same time, private assets aren’t magic. They can involve higher fees, less transparency, and limited liquidity, which is why education and simple, well-structured products matter.  

What’s Changing Inside 401(k)s

Policy is moving, too. Recent federal action aims to make it easier for plan sponsors to consider private-market options in workplace plans, with agencies tasked to clarify how that should work in practice. None of this flips a switch overnight; it sets the direction and starts the rule-making clock.   

That measured pace is a feature, not a bug. Many retirement advisors support carefully adding private assets, with safeguards and clear ERISA guidance. In other words, access and innovation should grow alongside investor protections, not ahead of them.   

How to Approach Private Assets the Smart Way

Whether inside a retirement plan down the road or in a taxable account today, a few principles can help:

• Keep it simple. Favor plain-English strategies you can explain back in a sentence. “Short-duration, real-estate-backed income note” is clearer than a 200-page blind-pool fund.
• Know your time horizon. Private assets can be less liquid. Match the commitment to money you won’t need tomorrow.
• Start small and ladder. Consider building positions in steps across maturities (e.g., 6, 12, 24 months) so cash flows back regularly and risk is spread out.
• Prioritize transparency. Look for offerings that show you the engine under the hood—what backs your investment, how cash flows are generated, and how risks are managed.

Where Connect Invest Fits

At Connect Invest, our mission is to make real-estate-backed income simple, secure-minded, and accessible. We focus on short-duration notes backed by real-world projects and a clear line of sight to the collateral and cash flows. Investors tell us they value three things about this approach:

Clarity: You understand what you own and why it pays. 

Discipline: Defined terms and underwriting standards keep the process tight. 

Access: Low minimums make it possible to start small and build your strategy over time. 

 No fees: Keep what you earn, no management or advisory fees.

That aligns with what the latest survey data is saying: investors want the benefits of private markets without the complexity tax. Our job is to deliver institutional-grade structure in an everyday-investor format—no jargon, no black box.

The Bottom Line

The landscape is changing. Demand for private assets is rising, and policy is inching toward broader access in retirement plans. But the smartest path hasn’t changed: learn first, keep it simple, and align every investment with your time horizon and goals. When you do that, private-market income—especially real-estate-backed income can play a clear, purposeful role in your portfolio.

If you’re curious where a short-duration, real-estate-backed note could fit, our team is happy to walk you through the process, so you can decide with confidence.