# Private assets in 401(k)s could boost retirement by 8%

> A new Department of Labor rule removes legal barriers that have kept retirement plans from offering private market investments to workers.
- Title: Private assets in 401(k)s could boost retirement by 8%
- Summary: A new Department of Labor rule removes legal barriers that have kept retirement plans from offering private market investments to workers. The DOL rule gives…
- Keywords: department of labor, 401k, private equity, retirement savings, erisa, fiduciary rule, defined contribution plans, private markets, retirement income, investment options, Private, assets
- Source: Fortune — https://fortune.com/2026/09/18/dol-rule-private-market-assets-401k
- Author: Angela M. Antonelli
- Read time: 2 min
- Topics: department of labor, 401k, private equity, retirement savings, erisa, fiduciary rule, defined contribution plans, private markets, retirement income, investment options
## DOL clears path for private assets
The Department of Labor is finalizing a rule that lets 401(k) plan sponsors offer private market investments without fear of legal liability. The rule sets six objective factors fiduciaries must consider: risk-adjusted performance, fees, liquidity, valuation, benchmarks, and complexity.
## ERISA was designed for this
Congress created ERISA in 1974 to give plan sponsors freedom to innovate. Over 50 years, litigation risk and regulatory uncertainty have made sponsors afraid to use tools like private assets. The new rule restores what the law originally intended.
## Research shows real income gains
Georgetown University's Center for Retirement Initiatives found that adding 15 to 20 percent in private assets to target-date funds boosted retirement income by 6 to 8 percent, net of fees. A 2025 study confirmed this across five different worker profiles.

> A 2022 study found that even modest allocations of 15 to 20 percent to alternative assets could boost retirement income by 6 to 8 percent, net of fees.
## The rule doesn't mandate anything
Plan sponsors can still choose not to offer private assets if they have small plans, high turnover, or limited expertise. The rule simply removes legal penalties for those who do include them after following the required process.
## Workers deserve the same tools
The number of publicly listed U.S. companies has dropped from over 8,000 in 1996 to just over 4,000 today. High net worth investors have long used private markets to diversify. Workers in 401(k)s should have access to the same options.
## Rigor required, not a blank check
A fiduciary who adds risky private equity without documenting risk-adjusted performance, fees, valuation, and liquidity won't get legal protection and remains fully liable. The rule forces the same scrutiny onto private assets that already applies to stocks and bonds.
## Legal clarity unlocks benefits
Plan sponsors have avoided private assets because of litigation risk, even though research shows they improve outcomes. The DOL rule removes this barrier by giving fiduciaries a legal presumption of prudence when they follow the required process.
## Key takeaway

The DOL rule gives plan sponsors legal protection to include private equity, credit, and real assets in 401(k)s, which research shows can improve retirement income by 6 to 8 percent.