Summary
The article discusses the challenges U.S. workers face in securing their retirement, emphasizing the opportunity to strengthen retirement accounts by including investments in private businesses. It suggests that allowing 401(k) plans to invest in small and mid-sized private companies could help diversify investments and potentially improve retirement savings. The article also notes that currently, most employees do not have access to these investment options, unlike wealthier individuals and certain pension funds.
Key Facts
- Many U.S. workers worry about their retirement security due to economic uncertainty.
- Expanding investment options in retirement accounts to include private businesses could improve retirement savings.
- Small and mid-sized businesses make up 99% of U.S. firms and often rely on private capital.
- Over 18,000 private businesses are not accessible to most employees' 401(k) plans.
- The number of publicly traded companies has decreased from about 7,400 in 1997 to under 4,000 today.
- Wealthier individuals and some pension funds already invest in private markets.
- Private equity has historically offered higher returns than public stocks over long periods.
- 401(k) plans for over 90 million Americans often lack access to private investments.
