BlackRock’s 2025 Read on Retirement® survey has revealed a record confidence gap between employees and employers over retirement readiness, and pointed to private equity and private markets as a key part of the solution.

While 64% of employees believe they are on track to retire comfortably, only 38% of employers agree, the lowest level on record. Retiree confidence has also fallen sharply, with just 27% feeling financially secure for the long term, compared with 43% in 2020.

BlackRock argues that private markets, including private equity, can play a central role in bridging this divide. Its research suggests that allocating to private assets within retirement plans could increase savings by 15% over a 40-year horizon, compared with traditional portfolios.

The survey also highlights growing demand for professionally managed solutions and alternative strategies. Half of workplace savers now prefer managed investment options, while 86% want guaranteed income products. Employers are increasingly receptive, with all surveyed plan sponsors recognising responsibility for providing such tools.

BlackRock’s private markets platform already spans $260bn, with strategies designed to give investors broader access to private equity, private credit, and infrastructure. The firm stressed that incorporating these asset classes into retirement plans can provide diversification, higher long-term returns, and more resilient income streams.

“While much progress has been made to help educate and simplify saving for retirement, savers and employers alike are seeking more solutions, like professional guidance and access to lifetime income and private markets, to help people build confidence and afford longer retirements,” said Jaime Magyera, Head of BlackRock’s Retirement business.

The findings underscore the growing role of private equity and private markets in reshaping retirement strategies, particularly as traditional defined benefit schemes give way to defined contribution plans with broader asset allocations.

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