Wall Street is racing to reshape how 70 million Americans save for retirement. President Trump is proposing to make risky investments more widely available to ordinary savers1, and the biggest names in finance are already lining up to cash in. But behind the promise of higher returns lies a battle over fees, transparency, and the safety of the nest eggs millions of families depend on.
What Trump’s Executive Order Actually Does
In an executive order dated August 7, 2025, President Trump called for a reexamination of regulations and guidance for retirement plans.1 Trump signed the order to clear the way for Americans to invest their retirement savings in private equity, cryptocurrency, real estate and other alternative assets.2
The order does not change any laws on its own. It does not amend pension or securities laws but instructs the Department of Labor and the SEC to propose new rules that will open the door to regulatory changes under ERISA and securities laws.3
The Department of Labor moved fast. Trump’s executive order directed the DOL to consider rescinding Biden-era guidance expressing concern about risks associated with private equity, and the DOL rescinded it less than a week later.1
Proposed rules were expected on February 3, 2026, with final rules anticipated by late 2026, followed by interagency coordination on valuation, custody, and disclosure requirements.3
Trump executive order private equity crypto 401k retirement savings
Wall Street Is Already Racing to Get Ready
The financial industry did not wait. Much-anticipated guidance from the administration is expected any day, new funds featuring private assets are being launched, and executives predict 2026 might be the year their long campaign starts paying off.4
Here is a snapshot of what major firms have done:
- Apollo Global Management’s CEO Marc Rowan has talked about developing products for 401(k)s, and State Street Global Advisors launched target-date funds with exposure to private markets.5
- Empower, the country’s second-largest provider of workplace retirement plans, announced a partnership with fund managers and custodians to offer investments through collective investment trusts.5
- Goldman Sachs Asset Management launched a collective trust private credit fund, and Blackstone created a new group focused on developing funds for retirement accounts.5
- Private credit firms are preparing to reach everyday investors by launching new vehicles more compatible with 401(k)s, with managers launching 41 evergreen funds dedicated to private credit last year alone, according to Preqin data.6
Apollo, Carlyle, and KKR have all recently hired veterans from the retirement and fund industry, and smaller private equity firms have acquired more than 900 independent retirement and wealth management firms over the past decade. In January 2026 alone, 20 such deals were made.4
The Promise: Higher Returns and More Choices
Supporters say this move is long overdue. The number of public companies in the U.S. has been halved from about 8,000 in the late 1990s to roughly 4,000 today.7 That means retirement savers who can only buy public stocks are missing a growing piece of the economy.
“The theoretical benefits are that everyday Americans can invest in a broader menu of companies,” said Robert Brokamp, a financial planning expert at The Motley Fool.2
Key potential upsides include:
- Higher return potential from senior secured private loans
- Better diversification away from public stock market swings
- More capital flowing to middle-market companies that drive jobs
A recent executive order encouraged U.S. regulators to explore letting 401(k) plans invest in private markets. After all, if defined-benefit pension plans, which typically allocate 20% to 30% of their portfolios to private markets, benefit from these investments, supporters ask why individual savers should not have similar access.8
Australia offers a proof of concept, where private markets make up nearly a quarter of assets in retirement savings vehicles.8
The Risks That Could Hurt Ordinary Savers
Not everyone is cheering. The concerns are serious, and they center on three core problems.
| Risk | What It Means for You |
|---|---|
| High Fees | Private funds can charge 1% to 2% in management fees and up to 20% in performance fees, far above the 0.3% charged by typical target-date funds |
| Illiquidity | Private funds typically lock up money for 5 to 10 years, and redemptions can be suspended during market stress |
| Opaque Pricing | Private assets are priced quarterly based on manager estimates, not daily market prices |
Benjamin Schiffrin, director of securities policy at Better Markets, noted that target-date mutual funds holding stocks and bonds charge 0.3%, while private funds can charge 1% to 2% in management fees and up to 20% in performance fees.2
Knut Rostad, co-founder of the nonprofit Institute for the Fiduciary Standard, fears private assets in 401(k)s could put retirement savers at risk of big losses. He predicted many fiduciaries will ignore the directive because “the result will be a massive train wreck where many people are seriously hurt.”2
Since the global financial crisis, public pension plans with significant exposure to alternative assets have underperformed a simple portfolio of 60% stocks and 40% bonds, according to a 2024 study from the Center for Retirement Research at Boston College.7
What financial experts suggest: Lisa Kirchenbauer of Omega Wealth Management told NPR that a sensible approach is to allocate around 5% to 10% of your portfolio to these asset classes, which could add a little market resilience without overexposing yourself to illiquidity risks.9
What Happens Next and How to Protect Yourself
Industry leaders believe 2025 set the foundation. In 2026, “we’re going to start seeing more of this come into play, more than just the interval funds,” said Cheryl Nash of InvestCloud. She expects the shift to “really take hold” by late 2026 and early 2027.5
But do not expect overnight changes to your account. Given all the due diligence fiduciaries will have to do, most workplace plan retirement savers are not likely to see a private market option soon, and some may not see any changes at all.10
Most 401(k) investors seem perfectly fine with the options they have, and only a handful of plans have said they plan to add private assets to their menus.4
If private options show up in your 401(k), here is what to do:
- Ask your employer what fiduciary protections are in place
- Check the total fees, including management and performance charges
- Understand the lockup period and whether you can access your money when needed
- Consider limiting exposure to no more than 5% to 10% of your portfolio
- Wait and see how these new products perform in real market conditions before jumping in
The future of retirement saving in America could look very different within a few years. The $14 trillion market for U.S. defined-contribution retirement plans has become a prize for buyout firms4, and the push will only grow louder. For every worker putting aside money each paycheck, the stakes could not be higher. Whether this shift ends up boosting retirement accounts or padding Wall Street fees will depend on how strong the guardrails are and how wisely savers respond. This is your money and your future. Stay informed, ask hard questions, and never let anyone rush you into something you do not fully understand.
Drop your thoughts in the comments below. Are you comfortable with private equity and crypto showing up in your retirement plan, or does it worry you
