Story perspectives

401(k) Plans Embrace Private Assets Amid Controversy

7/13/2025

50 6

Summary

Story summary

401(k) plans are evolving to include private market assets like private equity and real estate due to regulatory changes.
Providers like Empower are collaborating with firms to introduce these investment options, despite concerns about risks and costs.
Critics, including Sen. Elizabeth Warren, raise concerns about transparency and suitability for average workers.
While private assets can diversify portfolios, they necessitate careful management and investor education to address complexities.

1 of 1

Story summary

401(k) plans are evolving to include private market assets like private equity and real estate due to regulatory changes.
Providers like Empower are collaborating with firms to introduce these investment options, despite concerns about risks and costs.
Critics, including Sen. Elizabeth Warren, raise concerns about transparency and suitability for average workers.
While private assets can diversify portfolios, they necessitate careful management and investor education to address complexities.