How Fintech Is Redefining Retirement Planning For The Private Markets Era

An older couple is sitting at their kitchen table reviewing financial documents.

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Most Americans are preparing for retirement with yesterday’s tools. The rules of retirement planning are changing, but few have noticed. Financial innovation often promises greater access and equality, yet adoption rarely keeps pace with aspiration.

A recent Harris Poll found that nearly 40% of Americans have never heard of private-credit funds, a class of alternative investments that Wall Street is racing to bring to 401(k)s. Only 10% say they want more nontraditional options in their retirement accounts. Yet once investors learn that most U.S. businesses generating over $100 million in annual revenue are privately held, nearly 60% say they would consider investing in them, and 90% would allocate part of their savings to private markets.

It is not that Americans do not want these investments. They just do not know they exist.

The Infrastructure Gap in Modern Retirement Planning

The disconnect between awareness and appetite points to a fundamental problem: the infrastructure to connect regular investors with private credit simply has not existed until recently. For decades, these investments remained locked behind institutional walls, accessible only to pension funds, endowments, and the ultra-wealthy.

That is changing as technology platforms modernize an industry that has historically run on spreadsheets and handshakes. “Private credit shouldn’t be a black box,” asserts Nelson Chu, co-founder and president of Percent, a fintech platform democratizing access to private credit markets. His company is one of several working to crack open what has long been an opaque, insider-only market. “By standardizing issuance and surfacing live order books and post-close surveillance, we’ve opened a historically institutional market to accredited investors with shorter durations, lower minimums, and clearer visibility into risk and cash flows.”

What Chu describes addresses one of the biggest obstacles to bringing these investments mainstream: transparency. Traditional private credit deals are typically opaque, illiquid, and require enormous capital commitments. Modern platforms are changing the equation by building digital infrastructure that brings efficiency and visibility to previously murky markets.

Why Retirement Planning Needs Alternative Assets

This matters for a simple reason: 401(k) investors have watched their investment options narrow as the number of publicly traded companies has declined. Private markets now represent a vast universe of investment opportunities that most retirement savers cannot touch, even as their pension fund counterparts have loaded up on these assets for years.

The irony is hard to miss. The investments deemed suitable for public pension funds are considered too risky or complex for the individuals those pensions serve.

Earlier this year, federal agencies were mandated to ease regulations around alternative investments in retirement plans signals momentum toward broader access. Major asset managers, like Apollo and BlackRock, are already positioning themselves to capture a share of the $13 trillion 401(k) market. The race is on.

The Future of Retirement Planning Takes Shape

Success will likely not come from regulatory approval alone. It will require building investor confidence through education and infrastructure. Companies like Percent in the U.S. and Germany’s Exaloan are demonstrating that private credit can operate with the same transparency and efficiency that investors expect from their brokerage accounts.

Exaloan provides data infrastructure and analytics that enable banks and asset managers to originate, assess, and monitor private debt portfolios with institutional-grade transparency. By digitizing loan-level data and standardizing reporting, platforms like these are proving that private credit can operate with the same clarity and efficiency investors expect from their brokerage accounts.

“Retail investor appetite for alternative assets has accelerated dramatically,” Chu explains. “We’re seeing sophisticated investors, business owners, executives, professionals, actively seeking diversification beyond the 60/40 portfolio. They want assets that don’t correlate with public markets, are designed to generate cash flow, and offer transparency into what they’re investing in.”

The question is no longer whether these assets will enter 401(k) plans. It is how fast the system can catch up. The technology is in place, and investor appetite is undeniable. What remains is closing the knowledge gap and creating the transparency that builds lasting trust. This has the potential to redefine retirement planning. And for millions of Americans, that shift cannot happen fast enough.