White House Moves to Open $14 Trillion Retirement Market to Private Equity Risks

Washington, Tuesday, 17 February 2026.
The Trump administration is advancing a controversial policy to unlock the $13.9 trillion 401(k) market for high-risk alternative investments, such as private equity. While framed as “democratizing” access to high-yield assets, analysts warn this deregulation exposes unsophisticated investors to complex, illiquid markets they are ill-equipped to navigate. A 2025 Finra study revealed that the average investor scores a mere 5.3 out of 11 on financial literacy, yet these changes would erode “accredited investor” protections designed to shield them. The timing is particularly contentious, following President Trump’s commutation of David Gentile, a CEO convicted of a $1.6 billion alternative investment fraud. This pivot signals a regulatory environment prioritizing Wall Street’s access to retirement capital over the safety of “mom and pop” savings.