Expanding Americans’ Options to Strengthen and Secure Their Retirement
Millions of American savers could soon have access to private investments through their professionally managed 401(k) plans. The American Investment Council supports a new proposed rule from the Department of Labor that would help give millions of workers more tools to build stronger, more secure retirements.
“Private investment has delivered strong, stable returns and provided diversification for public pension funds for decades; everyday savers should be able to enjoy those benefits, too,” said AIC President and CEO Will Dunham.
WSJ Ed Board Endorses Expanding Americans’ Access Private Investment in 401(k) Plans
“According to this narrative, the Labor Department is blowing open 401(k)s to risky investments that could include Trump meme coins. Sorry, not true. The Labor Department is proposing to clarify that employers don’t violate their fiduciary duty merely by incorporating private equity, real estate, and other ‘alternative’ investments in 401(k) fund options.” Wall Street Journal Editorial Board
Expanding Access to Dynamic, Fast-Growing Private Companies
Workers with 401(k)s have been unable to benefit from much of today’s growth because it sits outside of public markets.
– Today, there are half as many publicly traded companies in the U.S. as there were in the 1990s.
– More companies are going public later, choosing to stay private during their highest growth phase.
– Nearly 87% of firms with more than $100 million in revenue a year remain private.
Research from the Georgetown Center for Retirement Initiatives suggests that incorporating private investments into diversified retirement portfolios can meaningfully improve retirement outcomes.
New Research Confirms Private Investments Strengthen Retirement Savings
Two new studies from Duke University and the University of Denver find that adding private investments to 401(k) plans could significantly improve retirement outcomes for millions of Americans.
Providing a Critical Source of Diversification
Not only are there fewer publicly traded companies today, but a small number of companies are driving a large portion of returns. That concentration leaves everyday savers more exposed to volatility.
Adding private investments to 401(k) plans can help reduce that risk because they behave differently than public stocks and bonds. Over the past decade, institutions with higher private investment allocations experienced higher returns with less volatility, according to Cambridge Associates. For everyday savers, diversification is about building more resilient retirement portfolios.
Delivering a Proven Track Record of Strong Returns
Private investments have been a cornerstone for nearly every public pension plan in America and other institutional investors, delivering strong returns and providing diversification through periods of economic uncertainty.
Expanding access would allow everyday savers with 401(k)s to enjoy many of those same benefits and build more resilient, long-term retirement portfolios.
How Private Investment Can Help Address America’s Retirement Crisis
“[O]ver the long term, private equity as an asset class continually and consistently outperforms the broader stock market and other popular investment categories. This is exactly why investors should be offered the option to invest in private markets. It’s also why, beyond wealthy investors, public servants – including millions of teachers, police officers, and firefighters – have long relied on these investments to keep their pension plans fully funded.” AIC CEO Will Dunham in Fortune
AIC Supports Expanding Access to Private Investments
The American Investment Council supports giving everyday savers more choices and more control over their 401(k) retirement savings and their financial futures. Read more about President Trump’s August 2025 Executive Order on democratizing 401(k)s here.
