Private Equity, Cryptocurrency, and Other Alternative Assets in 401(k) Plans

A proposed policy would make it easier for employers to include alternative assets as investment options in employer-sponsored retirement plans such as 401(k) accounts. These types of investment options include private equity, private credit, private debt, venture capital, cryptocurrencies, and other instruments.

Including alternative assets, which generally are riskier and less liquid, in defined contribution plans raises several concerns. This report provides insights from a 2025 AARP survey to assess interest, knowledge, and concerns among retirement plan participants about the introduction of private equity and cryptocurrency in defined contribution plans. The report also discusses policies necessary to protect investors and ensure employers meet their fiduciary duty as the 401(k) landscape evolves. Read the full report.

Key Takeaways:

• A proposed policy would allow for the inclusion of alternative assets such as private equity and cryptocurrencies in employer-sponsored retirement plans, raising concerns given those assets’ generally greater risk and other issues.
• Knowledge among adults of risks associated with alternative assets is low. An AARP survey found, for example, that only 7% of respondents answered most questions about private equity correctly.
• Interest in both private equity and cryptocurrency falls sharply once savers learn about the risks.
• Close to 70 percent of adults surveyed would be uncomfortable being defaulted into a fund that includes private equity, and 78 percent would be uncomfortable with one that includes cryptocurrency.
• Respondents voiced strong support for stronger investor protections — including clearer disclosure, financial-knowledge safeguards such as informed consent, and higher fiduciary insurance — to help employers meet their fiduciary duty as the 401(k) landscape evolves.