Workplace Retirement Plan Participants Want Private Assets. Should They?
Tom Sawyer famously convinced his friends that whitewashing a fence was actually really fun. A similar FOMO scenario may be playing out in workplace retirement plans.
Nearly half of 401(k), 403(b) or 457 participants said they would invest in private equity and private debt if their plans provided access, up from 36% in 2024, according to a new Schroders report. Additionally, 77% of plan participants said they would even increase contributions to their plans if private assets were available. With asset managers championing alternatives and President Donald Trump signing an executive order expanding access to them, the hype is real. But is it wise? Do participants even understand how these investments work?
“Too many investors…
