Americans for Financial Reform Education Fund and law firm Engstrom Lee have released a new report that found defined contribution retirement plans, such as 401(k)s, with virtually no exposure to private equity or other alternative assets, have outperformed defined benefit pension plans with substantial allocations to those investments.
The study examined the empirical performance of 58,000 retirement plans — pension plans and 401(k) plans — over 16 years, from 2009 to 2024, and found clear outperformance by plans without alternative assets.
The report debunks Wall Street claims and the White House’s analysis about the financial performance of alternative investments used to justify opening 401(k)s to risky, illiquid, costly and unstable investment options. The report identifies
