Hidden Retirement Trend Uncovered:

January 2022

Retirement accounts are a high-profile conversation topic in the U.S. However, one of the most important aspects of retirement planning has been overlooked: the surge in demand for investing in alternative investments through a retirement account.

Until now, most retirement accounts and the conversations surrounding them focused on offering increased access to traditional investments such as stocks, index funds, and bonds. Yet millions of Americans have now recognized the importance and urgency to expand their retirement portfolio by investing in alternative investments such as cryptocurrency, real estate, and private companies.

How strong is the demand for investing in alternative investments through a retirement account? What generations are seeking to take this action? What types of alternative investments do Americans want to access through their retirement accounts—and why? Most importantly: Would Americans invest more money in their retirement accounts if they knew they could access alternative investments?

Answering these questions and many more was the catalyst behind the 2022 State of Retirement Investing in Alternative Assets National Study.

Rocket Dollar and The Center for Generational Kinetics teamed up to uncover, analyze, and understand the desire to invest in alternative investments through retirement accounts, the interest and composition of that demand, and uncovering the new behaviors that drive access to alternative investments in a retirement account. Uncovering these missing insights and data is critical to informing the conversation around retirement and alternative investing as well as help millions of Americans feel more secure and in control of funding their retirement.

What did the national study uncover? Many exciting findings! In this Executive Summary, we share seven research-based insights to inform and advance the conversation about alternative investments going mainstream in retirement accounts.

The national study uncovered a strong desire to invest in alternative investments through retirement accounts. The desire to invest in alternative investments was fueled by a combination of being able to start small, diversify an investment portfolio, and a general perception that alternative investments are a necessary component of investing. It’s also motivated by a strong recognition that for many Americans they believe they will need to fund their own retirement because they are unsure that they can depend on Social Security.

Analyzing the above insights—and many more to be shared in the national research study’s forthcoming white paper—showed that investing in alternative investments through a retirement account is poised to become mainstream. The trend also shows that the future market for investing in alternative investments through a retirement account is potentially much larger than its current size.

It’s clear that investors are looking for solutions to make these alternative investments easily and safely through existing and new IRAs as well as to build their portfolio, track investment progress, and automate contributions.

Uncovering the tremendous and largely overlooked demand for alternative investing through IRAs signals the start of a new period of investing momentum. This investment demand also presents a tremendous opportunity for alternative asset investors via retirement accounts, alternative investment providers, and both technology solutions and advocates who are making this moment possible.