Celebrating National 401(k) Day: All Americans Deserve Access to Private Equity’s Strong Returns
Will Dunham, AIC President and CEO: “For decades, public pension funds have invested in private assets because they deliver strong returns over the long term and are a smart, safe way to diversify retirement savings.”
WASHINGTON, D.C. – Today, the American Investment Council celebrates National 401(k) Day. Expanded private investment options in 401(k)s, including private equity and private credit, can enhance retirement security for hardworking Americans. According to data in AIC’s recently published 2025 public pension study, private equity already consistently delivers strong returns for public pension retirees that outperform other asset classes in the long run. In 2025, more than 89% of public pension funds allocated a portion of their portfolio to private equity.
Lawmakers, regulators, and industry experts agree; all Americans should be able to access the benefits of private investment. Here’s what the experts are saying about the benefits of allowing 401(k) investment in alternative assets like private equity and private credit:
- Senators Steve Daines (R-MT), Markwayne Mullin (R-OK), Jim Banks (R-IN), Bernie Moreno (R-OH), Cynthia Lummis (R-WY), Bill Hagerty (R-TN), Katie Britt (R-AL), Eric Schmitt (R-MO) and Bill Cassidy (R-LA) said in a joint letter: “We are thankful for President Trump’s recent executive order directing the Department of Labor to expand Americans’ access to a modern retirement framework by increasing investment choice and diversification. Like the President, we believe this is a critical step in leveling the playing field for the 90 million American workers with a 401(k) or other defined contribution retirement plan who lack the freedom to invest in private equity, cryptocurrency, and other alternative assets.”
- House Committee on Financial Services Chairman French Hill (R-AR) and Subcommittee on Capital Markets Chair Ann Wagner (R-MO) said in a joint letter: “We applaud President Trump’s executive order to expand access to private-market investments in retirement plans. This is a significant step toward modernizing the U.S. retirement system and empowering American workers with greater choice for how they grow their savings. Facilitating the inclusion of private assets in 401(k) plans will help unlock new avenues for long-term financial security for everyday Americans. We look forward to using our positions on the House Financial Services Committee to work with the Department of Labor and Securities and Exchange Commission to ensure this policy benefits all workers.”
- Lori Chavez-Deremer, US Secretary of Labor, said:“Instead of allowing Washington bureaucrats to call the shots, we believe plan fiduciaries should decide which retirement investment options are best for hardworking Americans.”
- Stephen Moore, economist and political commentator, said: “The wealthy have long had almost monopoly access to the most lucrative investment opportunities, including private equity, private credit, crypto assets, and real estate investment trusts… Good news. In August, Trump signed an executive order called The Democratizing Access to Alternative Assets for 401(k) Investors. This allows defined contribution benefit plans to invest some of their assets in the $12 trillion market of private equity, private credit, and digital assets.”
- Jeb Hensarling, former Representative (R-TX) and Chair of House Financial Services Committee (2013-2019), said: “Workers are awakening to the fact that they are being denied access to an asset class that for decades has outperformed the stock market; namely alternative assets like private equity and private credit… Alternative assets, specifically private equity, can help ensure retirement security.”
- Hal Scott, President, Committee on Capital Markets Regulation, and John Gulliver, Executive Director, Committee on Capital Markets Regulation, said: “Under Mr. Trump’s recent order that the Labor Department investigate 401(k) investment in alternative assets, the government has the chance to help account holders while providing them the protections that they need. Private markets are here to stay, and it’s time that employees, retirees and other retail investors have safe access to the strong returns from this thriving sector of our capital markets.”
Read the full 2025 Public Pension Study to learn how private equity is allowing more Americans to retire more comfortably.
