Key Takeaways
- • On March 31, 2026, the Labor Department issued a proposed rule easing legal and regulatory barriers to adding alternative investments, including private equity and cryptocurrency, to retirement plans, following an August 2025 executive order from President Trump.
- • BlackRock and Empower have already moved to offer 401(k) target-date funds that include private investments, and other 401(k) providers are studying similar options.
- • Industry group the American Investment Council backs the rule, with CEO Will Dunham arguing everyday savers should share in private investment returns.
- • Sen. Elizabeth Warren (D-Mass.) opposes the proposal, citing weak investor protections, lack of transparency and expensive fees in the sector.
- • Private equity has yielded average annual returns of 10.5% from 2000 through 2020 per Investopedia, but carries higher risk, limited transparency and high minimum investments.
Summary
The Trump administration is pushing to give American retirement savers access to alternative investments, including private equity and cryptocurrency. On March 31, the Labor Department issued a proposed rule that would ease legal and regulatory barriers to including these assets in retirement plans. The proposal follows an August 2025 executive order stating that every American preparing for retirement should have access to funds that include alternative assets, provided those investments enhance returns.
The initiative has drawn sharp divisions. Sen. Elizabeth Warren, D-Massachusetts, said in a March 30 statement that anyone who cares about the financial security of working people should oppose the proposed rule. Critics warn that private assets are risky, complex and opaque, and concerns about the health of the private credit industry have grown recently. Industry leaders have welcomed the effort. Will Dunham, CEO of the American Investment Council, said private investment has delivered strong, stable returns and diversification for public pension funds for decades.
The market is already moving. BlackRock announced it would offer a 401(k) target-date retirement fund that includes private investments, and Empower made a similar move. Other 401(k) providers are studying the idea. Historically, private markets have been accessible mainly to wealthy investors, endowments and pension funds, with minimum investments in private equity funds often in the millions or at least hundreds of thousands of dollars, according to Investopedia, and capital tied up for years.
Proponents point to performance: Investopedia reports private equity yielded average annual returns of 10.5% from 2000 through 2020, outpacing the S&P 500. However, private equity is considered high-risk, and private companies face fewer regulations and reporting requirements than public ones, making earnings difficult to assess. Motley Fool senior adviser Robert Brokamp said private companies bring less transparency. Investopedia editor in chief Caleb Silver told USA TODAY that private equity is riskier than public equity and more speculative, and suggested everyday savers should not put more than 10% of their portfolio into private investments.
Warren has questioned the approach, writing to Empower's CEO in 2025 about how it would protect retirement savings in its private investment offering. Empower responded that retirement savers deserve access to the private investment market after decades of exclusion. Economist Alicia Munnell of the Boston College Center for Retirement Research criticized the executive order in a 2025 essay, writing that "the only party pushing for private equity in 401(k) plans is the private-equity industry."
The initiative has drawn sharp divisions. Sen. Elizabeth Warren, D-Massachusetts, said in a March 30 statement that anyone who cares about the financial security of working people should oppose the proposed rule. Critics warn that private assets are risky, complex and opaque, and concerns about the health of the private credit industry have grown recently. Industry leaders have welcomed the effort. Will Dunham, CEO of the American Investment Council, said private investment has delivered strong, stable returns and diversification for public pension funds for decades.
The market is already moving. BlackRock announced it would offer a 401(k) target-date retirement fund that includes private investments, and Empower made a similar move. Other 401(k) providers are studying the idea. Historically, private markets have been accessible mainly to wealthy investors, endowments and pension funds, with minimum investments in private equity funds often in the millions or at least hundreds of thousands of dollars, according to Investopedia, and capital tied up for years.
Proponents point to performance: Investopedia reports private equity yielded average annual returns of 10.5% from 2000 through 2020, outpacing the S&P 500. However, private equity is considered high-risk, and private companies face fewer regulations and reporting requirements than public ones, making earnings difficult to assess. Motley Fool senior adviser Robert Brokamp said private companies bring less transparency. Investopedia editor in chief Caleb Silver told USA TODAY that private equity is riskier than public equity and more speculative, and suggested everyday savers should not put more than 10% of their portfolio into private investments.
Warren has questioned the approach, writing to Empower's CEO in 2025 about how it would protect retirement savings in its private investment offering. Empower responded that retirement savers deserve access to the private investment market after decades of exclusion. Economist Alicia Munnell of the Boston College Center for Retirement Research criticized the executive order in a 2025 essay, writing that "the only party pushing for private equity in 401(k) plans is the private-equity industry."
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