Trump order opens door for modern tontines in 401(k) plans

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Trump order opens door for modern tontines in 401(k) plans

August 21, 2025

United States
United States
United States
Pensions & Investments

President Trump's August 7 executive order expands access to alternative assets in 401(k) plans, notably including “longevity risk-sharing pools,” interpreted as a nod to modern tontines. These investment strategies allow participants to share longevity risk, potentially offering higher lifetime income than traditional annuities. In this article published by Pensions & Investments, Partner David Kaleda explains that the White House’s broad definition of alternative assets signals a push to legitimize longevity risk-sharing pools and other lifetime income solutions. He emphasizes that regulators should not obstruct these strategies, stating, “regulators shouldn’t stand in the way of making them happen.”

David also highlights the importance of regulatory clarity, noting that plan fiduciaries will be looking for “clear regulatory guidelines, preferably safe harbors” to defend themselves in the event of litigation under ERISA.

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Kaleda_David@eversheds-sutherland.com

David Kaleda

Partner

Washington, DC, United States

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