Trump's plan to boost retirement savings would offer matched accounts

President Trump used the State of the Union to propose a program that would give workers without employer plans access to new accounts and match contributions up to $1,000 annually; congressional action would be needed to expand the match.

President Donald Trump used the State of the Union to announce a retirement proposal aimed at widening access for workers who lack employer-sponsored retirement plans. The plan, as described by the administration, would create accounts similar to the federal Thrift Savings Plan and match worker contributions up to $1,000 a year. The announcement comes amid long-running concern that many Americans have little saved for retirement and that many workers lack access to employer matches. Past federal efforts such as MyRA were discontinued, and a 2022 law already created a separate matching program for some low- and moderate-income households. Key facts: - The proposal was unveiled in the State of the Union and would match worker contributions up to $1,000 annually, according to the announcement. - It would provide workers without employer plans access to accounts like the Thrift Savings Plan and offer a menu of low-cost index funds. - Research cited in reporting shows nearly 54 million U.S. workers lack access to any employer-provided retirement plan, and about 63 million lack an employer match. - Congressional action would be required to expand the size of the match beyond current descriptions. - Reporters and advisers note the plan is light on operational details, uptake may be limited by household cash flow, and there are open questions about fiscal cost amid an existing budget deficit. Summary: The proposal could broaden formal saving options for large numbers of workers and introduce a government match to encourage contributions. Key near-term steps include congressional consideration of any legislation and further detail from the administration on program design and cost.