Improving Defined Contribution Outcomes
Rising Longevity and Falling Preparedness
The S&P 500 Can’t Provide Diversification Alone
For decades, defined contribution (DC) plans have primarily invested in strategies that are indexed and correlated. Just ten companies now represent more than 35% of the S&P 500’s market value.(1)
An Established Path
Global retirement systems, including US defined benefit plans, Australia, Mexico and the Netherlands, among others have included private markets for decades with improved diversification and the potential for better outcomes through the accumulation stage.(2)
Mind the Gaps
US retirees not only face a $4 trillion savings gap, but also the challenge of converting their nest egg into lifetime income.(3) While employers with pensions allocate on average 23% of their portfolios to private assets and embed guaranteed income through retirement, the same employers allocate ~0% of their DC plans to private markets without guaranteed income solutions.
Rewiring Retirement
Apollo partners with plan sponsors, consultants, financial advisors, insurers and recordkeepers to deliver DC solutions to fiduciaries that can offer both growth and protection.
Private Markets
We aim to provide purposeful access to private markets strategies as a portion of professionally managed portfolios. Our strategies are designed to improve diversification, enhance long-term returns, reduce portfolio volatility and offer broader exposure to the real economy.
Retirement Income
Apollo is a leading provider of retirement income through its affiliate Athene.(4) Today, Apollo, through its Vitera technology, helps savers turn assets into long-term guaranteed income streams with the ability to preserve flexibility and control.
Fiduciaries have the opportunity to modernize retirement strategies around savers’ needs: diversified portfolios, greater potential for excess return and tools that help convert savings into lifetime income.
What if Traditional Thinking Around Liquidity No Longer Holds Water?
Many assumptions about public markets are outdated.
Over $10 trillion is sitting in daily-liquid public market assets, amounting to a massive “liquidity tax” on 50-year savings that are tethered to increasingly indexed, correlated and volatile markets.(5)
Trading volume has declined. It can take five days to trade an investment-grade bond, and even longer when markets are volatile.(6)
In private markets and guaranteed income, recent innovations around product structure and architecture offer fiduciaries access while accommodating features they seek in DC and retirement products:
- Evergreen funds are helping broaden access to quarterly liquidity and more regular pricing.
- In guaranteed income, security doesn’t necessarily require giving up liquidity; modern solutions allow participants to convert savings into a lifetime paycheck while preserving flexibility, control and growth potential.
The Number of Public Companies has Halved
S&P CapitaliQ, Apollo Chief Economist. Note: For companies with last 12-month revenue greater then $100M by count. / EU Source: S&P CapitaliQ, Apollo Chief Economist. Note: For companies with last 12-month revenue greater then $100M by count.
“At Apollo and Athene, our goal is to support better retirement outcomes: expanding the toolkit and integrating private markets and retirement income solutions we believe can help enhance risk-adjusted returns, diversification and retirement security.”
Neil Mehta
Global Co-Head of New Markets
The World has Changed. Profoundly.
The old way of working hard and saving diligently is no longer enough to create a secure retirement.
The shift from defined benefit to DC plans in the US has coincided with a shift from guaranteed retirement income and alpha-driven strategies to low-fee, beta-driven accumulation and no clear path for spending in retirement.
Several global retirement systems have incorporated private assets into retirement portfolios for decades. Australia’s superannuation funds have grown 27x after incorporating private assets ~30 years ago; US DC assets only grew ~12.3x over the same period.(7)
Demand for decumulation strategies is universal, as retirees seek simplified, flexible solutions to convert savings to retirement income.
Strong demand for automatic, flexible retirement income
The Silver Tsunami is Here. It’s Time for Solutions.
Aging Demographics Are Reshaping Retirement Savings Needs
Source: UN Population Statistics, Haver Analytics, Apollo Chief Economist. As of January 2026.
Over 12,000 Americans are turning 65 every day, and the ability to plan effectively for retirement has diminished. Over half of Americans are worried they will outlive their savings.(9)
As demographics shift and market pressures intensify, leading firms are bringing innovation, scale and experience to help fiduciaries meet today’s challenges. Apollo, Athene and Vitera are partnering to deliver solutions built for the modern retirement landscape.
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Our Strategies
This material is for general information purposes only and is intended for plan sponsors. This material does not constitute an offer to sell, or the solicitation of an offer to buy, any security, product or service. Apollo has not made any representation or warranty, expressed or implied, with respect to fairness, correctness, accuracy, reasonableness or completeness of any of the information contained herein (including but not limited to information obtained from third parties unrelated to Apollo) and they expressly disclaim any responsibility or liability therefore. The information contained herein is not intended to provide and should not be relied upon for, accounting, legal or tax advice or investment recommendations. Certain information contained herein may be “forward-looking” in nature. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Any opinions expressed herein are current only as of the time made and are subject to change without notice. There can be no assurances that any of the trends described herein will continue or will not reverse. Past events and trends do not imply, predict or guarantee, and are not necessarily indicative of future events or results. Investing involves risk including loss of principal. Alternative investments often are speculative, typically have higher fees than traditional investments and often include a high degree of risk and are appropriate only for eligible long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase volatility and risk of loss. Past performance does not guarantee future results.
Footnotes:
- Bloomberg, Apollo Chief Economist. As of June 2024.
- Georgetown Center for Retirement Initiatives, Can Asset Diversification and Access to Private Markets Improve Retirement Income Outcomes? As of December 2022.
- Employee Benefit Research Institute. As of May 2017.
- LIMRA Annual Annuity Sales. As of March 2025.
- ICI, Apollo Chief Economist. As of March 2024.
- FRBNY, ICE BofA, Haver Analytics; Bloomberg, Apollo Chief Economist. As of November 2024.
- Australian Prudential Regulation Authority; Australian Government, Treasury, Explanatory Memorandum, Superannuation; United States Board of Governors of the Federal Reserve System. As of February 2025.
- Guaranteed Lifetime Income Study, Greenwald & Associates; Nationwide Protected Retirement Survey Report. As of August 2025.
- UN populations statistics, Haver Analytics, Apollo Chief Economist; Transamerica Center for Retirement Studies. As of April 2025.
