Key Takeaways
- • Georgetown University research demonstrates that modest allocations of 15-20% to private market assets in target-date funds could boost retirement income by 6-8% net of fees, according to a 2022 study by the Center for Retirement Initiatives.
- • A 2025 Georgetown report analyzed five real-world worker profiles (average workers, family caregivers, lower-income workers, job hoppers, and those facing early forced retirement) and found consistent 7-8% improvement in retirement income net of fees when target-date funds included private equity, private credit, and private real assets.
- • Angela M. Antonelli, Research Professor and Executive Director of the Center for Retirement Initiatives at Georgetown University's McCourt School of Public Policy, argues in a Fortune op-ed that the Department of Labor's proposed rule to permit everyday savers to access private assets in 401(k) plans would provide plan fiduciaries with greater clarity and flexibility.
- • The research challenges the exclusion of retail savers from private market diversification tools long available to high net worth and institutional investors, framing access to alternative assets as an equity issue in retirement planning.
Summary
Angela M. Antonelli, Research Professor and Executive Director of the Center for Retirement Initiatives at Georgetown University's McCourt School of Public Policy, published a Fortune op-ed supporting the Department of Labor's proposed rule to expand access to private market assets within 401(k) plans. The op-ed draws on years of research from Georgetown's Center for Retirement Initiatives examining the integration of private equity, private credit, and private real assets into defined contribution retirement vehicles.
The core argument rests on quantified performance data. A 2022 Georgetown study found that even conservative allocations of 15-20% to alternative assets could improve retirement income by 6-8% net of fees. More recent analysis from 2025 reinforced these findings across diverse demographic cohorts. The research examined five representative worker profiles: average savers, family caregivers, lower-income workers, job hoppers, and individuals facing early forced retirement. Across all five profiles, the inclusion of private assets in target-date funds generated a 7-8% improvement in retirement income net of fees.
Antonelli frames the policy debate as an access and equity issue. High net worth and institutional investors have long utilized private markets to diversify portfolios and enhance returns. Her op-ed argues that 401(k) plan participants—everyday savers—deserve equivalent access to these diversification and return-enhancement tools. The Department of Labor's proposed rule would grant plan fiduciaries clearer guidance and operational flexibility to incorporate private market strategies into retirement plans, addressing a longstanding limitation in retail investor access to alternative investments.
The Georgetown research directly contradicts concerns that private market assets are unsuitable for defined contribution plans serving ordinary workers. Rather than restricting access to institutional-grade investors, the evidence suggests that prudent allocations to private markets could materially enhance retirement security across income levels and employment patterns.
The core argument rests on quantified performance data. A 2022 Georgetown study found that even conservative allocations of 15-20% to alternative assets could improve retirement income by 6-8% net of fees. More recent analysis from 2025 reinforced these findings across diverse demographic cohorts. The research examined five representative worker profiles: average savers, family caregivers, lower-income workers, job hoppers, and individuals facing early forced retirement. Across all five profiles, the inclusion of private assets in target-date funds generated a 7-8% improvement in retirement income net of fees.
Antonelli frames the policy debate as an access and equity issue. High net worth and institutional investors have long utilized private markets to diversify portfolios and enhance returns. Her op-ed argues that 401(k) plan participants—everyday savers—deserve equivalent access to these diversification and return-enhancement tools. The Department of Labor's proposed rule would grant plan fiduciaries clearer guidance and operational flexibility to incorporate private market strategies into retirement plans, addressing a longstanding limitation in retail investor access to alternative investments.
The Georgetown research directly contradicts concerns that private market assets are unsuitable for defined contribution plans serving ordinary workers. Rather than restricting access to institutional-grade investors, the evidence suggests that prudent allocations to private markets could materially enhance retirement security across income levels and employment patterns.
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