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Adding these investments is a benefit for retirement

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Why this CEO wants private assets in retirement plans

Private assets currently account for less than 1% of assets in 401(k)s and other defined contribution plans, but some major asset managers and plan administrators want to increase that share.

“We are seeing institutions worldwide blend public and private markets, and in many cases, it’s been a great investment,” said Larry Fink, chairman and CEO of BlackRock, at a summit on retirement that the company sponsored last week. More than half of the $11.6 trillion assets under management at BlackRock are in retirement products.

Fink and other proponents say a key reason for including private assets in the $12.5 trillion workplace retirement plan market is the need for greater portfolio diversification. 

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Over the last 20 years, the number of publicly traded companies has declined as firms backed by private equity have grown. In the U.S., about 87% of companies with annual revenues of more than $100 million are now private, according to the Partners Group, a Swiss-based global private equity firm.

“So, how do we give 128 million Americans in the defined contribution system exposure to those asset classes?” asks Ed Murphy, CEO of Empower, the second largest U.S. retirement services company, which administers 88,000 retirement plans.

Murphy, whose company serves 19 million individual investors, supports efforts to add private assets to retirement plans as part of a target-date fund, managed account or collective investment trust fund rather than a “standalone” investment. 

“There’s a lot of good work being done in the industry on bringing this together in a way that that makes sense, and hopefully it gets employers comfortable,” he said.

Private equity comes with ‘greater risk’

Yet, for many plan sponsors to feel secure about investing in private assets, several challenges must be addressed, including high fees, transparency of the assets, liquidity risk and increased volatility.

“Private equity can pay higher returns than traditional public market investments, of course, with greater risk for retirement savers. This could offer an opportunity for higher growth for their assets, but it would mean more exposure to volatility, which is probably not ideal for people nearing retirement,” said Olivia Mitchell, a professor of business economics and public policy at the University of Pennsylvania and executive director of the Pension Research Council. 

Employers offering 401(k) plans also must act as fiduciaries, meaning they must act in the best interests of the plan participants, not themselves. 

Plan sponsors are responsible for financial education, which some experts say may be challenging in explaining less-well-known investments.

“If they don’t understand what they’re buying, they shouldn’t be in it,” said Robert Burnette, a financial advisor and CEO of Outlook Financial Center in Troy, Ohio.

Employers have to select and monitor investment options, ensure that fees are reasonable and provide participants with enough information to make informed decisions about their retirement savings. 

Larry Fink, chief executive officer of BlackRock Inc., speaks during the 2025 National Retirement Summit in Washington, DC, US, on Wednesday, March 12, 2025.

Al Drago | Bloomberg | Getty Images

Earlier this month, BlackRock completed its acquisition of Preqin, a provider of private market information. Fink says the company plans to build out its analytics to provide transparency and help investors understand risk in the private markets. 

“If we could do that, we could then go to our regulators, whether it’s the [Department of Labor] or the [Securities and Exchange Commission], depending on where we are trying to expand the investment opportunities and prove to them, show to them that these can be sensible instruments for a retirement product,” Fink said. 

“Our job is to be providing a much better transparency and analytics to get that done,” he added. “If we achieve that, then I think we’re going to have a credible opportunity to add these types of instruments to retirement products.”

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Social Security Administration leadership changes may impact benefits

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People line up outside the Social Security Administration office in San Francisco.

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New leadership at the Social Security Administration tied to the Trump administration’s so-called Department of Government Efficiency has implemented swift changes.

Many experts say Americans will notice a difference when seeking help from the agency following staff cuts, regional office closures and new service policies.

The Social Security Administration is currently under the temporary leadership of acting commissioner Lee Dudek, who was assumed that role in February after acting commissioner Michelle King stepped down over DOGE privacy concerns. Dudek had previously publicly stated he had been placed on administrative leave for cooperating with DOGE, according to reports.

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As a temporary leader, Dudek does not have the obligation to answer to Congress.

“When you are a confirmed commissioner, you get called up to the Hill to testify on various issues that are operating for the agency,” Jason Fichtner, a former Social Security Administration executive, said during a National Academy of Social Insurance panel last week.

“It’s a check and balance that we currently don’t have,” Fichtner said.

As DOGE’s actions have upended the status quo at the Social Security Administration, former agency leaders, retirement experts and Democratic lawmakers have raised concerns about its new policies.

Meanwhile, Republicans in Congress last week praised DOGE for increasing the agency’s efficiency since President Donald Trump took office.

The Social Security Administration did not respond to a request from CNBC for comment by press time.

‘Economic security of millions of Americans is at stake’

Last week, the National Academy of Social Insurance, a non-profit, nonpartisan organization, released a statement signed by recipients of its award named on behalf of former Social Security Administration Commissioner Robert M. Ball, who served in that role from 1962 to 1973.

“The economic security of millions of Americans is at stake,” the signees wrote of the “major, destabilizing changes” the Social Security Administration has recently undergone.

Among those to sign the statement include former acting Social Security Administration commissioner Kilolo Kijakazi, former Treasury Secretary Jacob Lew and former Social Security Administration chief actuary Stephen Goss.

The statement lists “unprecedented actions” recently undertaken by the Social Security Administration, including:

  • staff reductions of about 7,000 of the agency’s 57,000 employees while the agency already has an employee shortage and hiring freeze;
  • the closure of 10 field offices, which may limit access to benefits;
  • a reorganized leadership structure that will have just five deputy commissioners, who will now be political appointees;
  • the closure of the Office of Civil Rights and Office of Transformation in an effort to cut costs; and
  • the termination of research focused on how to improve Social Security, both from administrative and legislative standpoints.
Top Social Security official exits after refusing DOGE access to sensitive data

Confirmation process ‘needs to move along quickly’

Trump has nominated Frank Bisignano, chief executive of payments and financial technology company Fiserv, to serve as commissioner of the agency.

Bisignano’s Senate confirmation hearing is expected to take place in the coming weeks.

Former Social Security Administration Commissioner Michael Astrue, who led the agency from 2007 to 2013, said last week during a panel hosted by the National Academy of Social Insurance that while he doesn’t know Bisignano, “he can’t possibly be worse than what we have now.”

While the confirmation process has moved slowly in the past, it would be better to move swiftly and find a suitable leader for the agency, Astrue said.

“The process needs to move along quickly,” Astrue said.

Fiserv CEO on the nomination to Social Security Commisioner role

When Bisignano does sit before the Senate, he will have to answer “a lot of questions in the confirmation process, beginning with, what did you know and when did you know it?” former Social Security Administration Commissioner Martin O’Malley, who led the agency from 2023 to 2024, said during the NASI panel.

Senators may want to know whether Bisignano “approved and blessed” changes after his nomination such as cutting staff, eliminating offices and closing regional headquarters, O’Malley said.

Last week, Democratic Sens. Elizabeth Warren of Massachusetts and Ron Wyden of Oregon sent a letter to Bisignano emphasizing that he will be responsible for any benefit interruptions that may be prompted by sweeping changes at the agency. In the letter, they also included questions on his views on DOGE access to sensitive data, further staff cuts or other possible future plans for the agency.

Bisignano was not available for comment by press time.

Smith: Seniors ‘already seeing the benefit’

A new law that President Joe Biden signed on Jan. 5 — the Social Security Fairness Act — has made it so more than 3.2 million individuals who are eligible for public pensions will receive increased Social Security checks.

In addition, affected beneficiaries also stand to receive payments dating back to January 2024.

The Social Security Administration said in January it would take 1,000 work hours to send those back payments, much of which had to be done manually on a case-by-case basis, House Ways and Means Committee Chairman Smith said during a March 12 committee hearing.

However, that outlook has changed under Trump’s leadership, according to Smith.

“Seniors are already seeing the benefit of doing things differently,” Smith said.

The agency has already sent more than 71% of all back payments to affected beneficiaries, he said.

“The Trump administration’s embrace of automation and technology has made a night and day difference for those affected seniors,” Smith said.

“This is how the agency should work,” he said.

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Wholesale egg prices have ‘plunged.’ Retail prices may follow

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Eggs are displayed for sale in a Manhattan grocery store on Feb. 25, 2025 in New York.

Spencer Platt | Getty Images News | Getty Images

Wholesale egg prices have fallen significantly in recent weeks, a dynamic that may soon offer relief for consumers shell-shocked by record-high prices at the grocery store this year.

However, how quickly — and how much — retail prices will fall is unclear, experts said.

Wholesale prices dropped to $4.83 per dozen on Friday, a 44% decline from their peak of $8.58 per dozen on Feb. 28, according to Expana, which tracks agricultural commodity prices.

The pullback comes amid a reprieve from major bird flu outbreaks so far in March and weaker consumer demand, which have helped the nation’s egg supply to start recovering, according to a U.S. Department of Agriculture market analysis on Friday.

Prices have “plunged,” said Karyn Rispoli, an egg market analyst and managing editor at Expana.

Market dynamics are also putting “extreme pressure” on wholesale prices to fall further, Rispoli wrote in an e-mail.

Retail prices hit record high

Consumers paid $5.90 for a dozen large grade A eggs, on average, in February, a record high, according to U.S. Bureau of Labor Statistics data. Retail prices have blown past their prior record — $4.82 per dozen in January 2023 — and have nearly doubled from a year ago.

Pete & Gerry's Eggs CEO Tom Flocco: The run-up in egg prices is unprecedented

Prices had surged amid a deadly outbreak of bird flu in the U.S., which has killed millions of egg-laying chickens and crimped egg supply, according to agricultural economists and market experts. The U.S. Department of Justice also opened an antitrust investigation into the pricing and supply practices of major producers.

However, bird flu outbreaks seem to have tapered off in March, at least for now.

“Slowing [bird flu] outbreaks are leading to improved supply availability and wholesale market prices have responded with sharp declines over the past week,” the USDA wrote.

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Consumers, dissuaded by high prices and purchase restrictions imposed by many grocers, have also been buying fewer eggs, helping to ease supply shortfalls, Rispoli said.

Households also stockpiled eggs because they feared prices would keep climbing — a flashback of sorts to consumer behavior witnessed in the early days of the Covid-19 pandemic — meaning there isn’t an immediate need for them to replenish supply, she added.

Consumers still ‘feeling the peak market’

While there have been some early signs of easing prices, it’s unclear how rapidly — and to what extent — consumers may get more relief, experts said.

For one, there’s generally a lag of at least two to three weeks between a change in wholesale costs and subsequent retail pricing — meaning consumers are still largely “feeling the peak market when they go to buy eggs,” Rispoli said.

Plus, retailers ultimately choose “how closely they want to track wholesale prices,” she said.

Additionally, egg demand is likely to stay elevated as the Easter holiday approaches, Kevin Bergquist, an egg analyst at the Wells Fargo Agri-Food Institute, wrote in a March market update. (Easter is April 20 this year.)

“Egg prices will likely remain highly variable for the near future, but at a higher-than-usual level,” Bergquist wrote. “In the short term, we will likely see a continuation of high egg prices.”

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Here’s how to understand your college financial aid offer

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We are overly reliant on student loans to fund higher education, says NACAC CEO Angel Perez

For college hopefuls, there is a letter that is arguably more significant than an acceptance notification: the financial aid award.

Nearly 75% of all undergraduates receive some type of financial aid, according to the National Center for Education Statistics.

For a majority of students and their families, financial aid is the most important factor in their decisions about choosing where to attend and how to pay the tab. The amount of aid offered matters, as does the breakdown between grants, scholarships, work-study opportunities and student loans.

And yet, “the system lacks transparency, especially around the true cost of attendance, making it very difficult for families to comparison shop and make informed financing decisions about their education,” said Rick Castellano, a spokesperson for education lender Sallie Mae.

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“Financial aid offers are a good example,” he said. “There isn’t a standard format and it can be difficult to determine what is grant and scholarship aid versus what needs to be paid back, making it tough for families to compare and fully understand what’s being offered.”

Understanding the financial aid offer

There may be more college aid available

“Even after receiving aid offers, there’s still money out there,” Castellano said.

For families who have already filed the Free Application for Federal Student Aid, or FAFSA, but are concerned about making ends meet, it is possible to ask the college financial aid office for more aid, especially if your financial circumstances have changed.

To appeal for more college aid, document any changes in assets, income, benefits or expenses. Or, if the financial aid package from another comparable school was better, that is also worth noting in an appeal.

In fact, 71% of families who appealed their financial aid offers in the 2023-24 academic year received additional funding, according to Sallie Mae.

How changes at the Education Dept. factor in

This year, the U.S. Department of Education, which is responsible for underwriting student loans and disbursing college aid, is in the middle of a massive upheaval, after slashing nearly half of its staff.

The agency said in a press release on March 11 that it would “continue to deliver on all statutory programs that fall under the agency’s purview,” including Pell Grants and student loans.

Still, the Education Department also runs the FAFSA and handles oversight of colleges, such as audits and program reviews, as well as technical support to college financial aid offices — and staffing cuts could impact what support is available, according to higher education expert Mark Kantrowitz.

“There might be delays in responses to student and borrower inquiries and the accuracy of the responses may be affected,” he said.

When in doubt, turn to private scholarships

High school students attend Cash for College, a college and career convention, in Los Angeles.

Getty Images

In addition to the collage aid offer, there are more than 1.7 million private scholarships and fellowships available, often funded by foundations, corporations and other independent organizations, Kantrowitz said. The total value of those awards is more than $7.4 billion.

It’s never too late to tap alternative sources for merit-based aid, according to James Lewis, co-founder of the National Society of High School Scholars, an academic honor society.

“A lot of families assume they won’t be eligible for scholarships,” he said — that’s not the case. Scholarships could help bring a pricier school within budget.

“Get beyond, ‘Well, I can’t afford that,'” Lewis added. “Don’t self-select out.”

If you’re pursuing this strategy, check to make sure your college of choice doesn’t have a so-called displacement policy, which could mean private scholarships will reduce other sources of aid.

Continue to look for more scholarships, even through the spring, Lewis advised. “My advice to students and their families is to research and apply often. Google is their best friend.”

Students can also ask their high school counselor about opportunities or search websites such as Scholarships.com or the College Board.

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