The Last Mile

The modern 401(k) plan was never intended to replace the traditional pension, yet over time it has become the primary retirement savings vehicle for millions of Americans. Policymakers and the retirement industry have worked for decades to retrofit defined contribution plans with pension-like features—from professional asset allocation encouraged by the Pension Protection Act of 2006 to lifetime income options advanced by the SECURE Act of 2019. Still, one major component of institutional-style investing remains largely absent: access to private markets. This article examines why private equity, credit, real estate, and infrastructure have been slow to enter 401(k) plans, how fiduciary safe-harbor rules and fee-focused litigation risk constrain innovation, and why integrating private markets could represent the next—and potentially transformative—stage in strengthening retirement security.