Mark Uyeda, U.S. Securities and Exchange Commissioner, has urged a renewed push to incorporate private market investments into retirement accounts. In doing so, 401(k) plans would become more aligned with professionally managed pension funds, according to AltsWire.
While accredited investor standards that are based on income and net worth skew toward wealthier, older individuals, private investments could offer substantial long-term growth potential for younger contributors with longer timelines until retirement.
“Especially think about younger workers, someone who’s not going to retire for 30 or 35 years in the future; the investment horizon makes a lot of sense for private assets there,” Uyeda said in a statement.
Former SEC chair Jay Clayton also has vouched for this initiative, according to AltsWire, advocating for defined-contribution retirement plans to allocate up to 10 percent of their portfolios to private securities.
