President issues executive order to add private equity and private credit to 401(k) plans, with Department of Labor tasked to implement. Concerns raised about complexity, fees, and lack of performance increase in pension plans with private equity. DOL issues clarifying statements cautioning fiduciaries on risks. Private equity may not offer significant returns or diversification in retirement plans.

Studies show limited benefits of private equity in 401(k) plans, with unclear impact on returns and volatility. Private equity may not offer significant diversification or benefits to participants. Fiduciaries urged to consider risks before introducing private equity. Concerns raised about potential negative impact on overall portfolio returns.

Private equity may only represent a small portion of market activity, with limited access for plan participants. Estimates show private equity accounting for 10% of equity market and private credit for 7% of private debt market. Despite potential market trends, risks of private equity may outweigh potential gains for retirement savings.

Read more at Yahoo Finance: Workers do not need private equity in their 401(k) plans