Trump recently introduced a retirement savings proposal: Here’s what’s clear and what remains uncertain

President Trump Announces Retirement Savings Initiative

President Donald Trump was featured on television during a State of the Union viewing event in San Francisco on February 24, 2026. Photo credit: David Paul Morris/Bloomberg/Getty Images.

New Retirement Savings Proposal for Private Sector Workers

During his State of the Union address on Tuesday, President Trump briefly outlined a plan to support private-sector employees who lack access to employer-sponsored retirement programs. He stated:

"Half of working Americans still do not have a retirement plan with employer matching contributions. To address this significant gap, my administration will ensure that next year, these often-overlooked workers can participate in the same retirement plan available to federal employees. We will match contributions up to $1,000 annually."

A White House representative informed CNN via email on Wednesday that more information about this initiative will be released soon.

Understanding the Retirement Coverage Gap

The Trump administration aims to reduce the disparity in retirement savings, which has left millions of low- and moderate-income workers without employer pensions or straightforward ways to save for retirement at work.

Efforts to bridge this gap have been ongoing among lawmakers and policy experts, but the specifics have often been contentious. Various proposals have surfaced and faded, sometimes reappearing later. For example, state-based auto IRAs are now available in 17 states, though their impact has been limited due to political challenges.

According to the White House, Trump’s plan could largely be implemented using current administrative powers, meaning congressional approval may not be necessary. However, future legislation could further strengthen the proposal.

Existing Federal Matching Contributions

The White House clarified that the matching contribution Trump referenced is the Saver’s Match, which was enacted in 2022 and will begin next year.

• Workers earning less than $35,500 (or $71,000 for married couples) qualify if they save up to $2,000 annually ($4,000 for couples) in eligible retirement accounts such as 401(k), IRA, or auto IRA.
• The federal government will match contributions up to $1,000 ($2,000 for couples).

Potential Features of the New Plan

President Trump indicated that private sector employees would have access to retirement plans similar to those available to federal workers.

The White House official described the proposed plan as a “universal, portable” account offering a range of index-based investment options and low fees.

Federal Retirement Plans and Previous Proposals

Federal employees currently participate in the Thrift Savings Plan, which provides a selection of low-cost funds.

In the past, Secretary of State Marco Rubio, while serving as senator, suggested extending TSP access to non-federal workers, but the plan stalled and faced uncertainty regarding implementation, according to Kim Olson of the Pew Charitable Trusts. Additionally, there was resistance from the private sector (read more).

Kevin Hassett, before his role as Trump’s National Economic Council director, advocated for the Retirement Savings for Americans Act, which would automatically enroll eligible workers without employer plans into a TSP-like program.

Mark Iwry, former senior adviser to the Treasury Secretary, noted that such a plan would require legislative action.

The Trump Account: Expanding Savings Opportunities

The White House is considering the creation of “Trump Accounts” for adults, building on a new savings vehicle for eligible children with Social Security numbers. These accounts are scheduled to launch in July, with Treasury finalizing the regulations.

Once a child turns 18, the Trump Account transitions into a traditional IRA. The latest proposal appears to be an IRA-like option for adults, featuring diverse, low-cost funds and the Saver’s Match incentive for lower- and moderate-income workers.

Although adults can already open IRAs and benefit from the Saver’s Match, research indicates many do not take advantage of this opportunity. The White House noted that workers without access to workplace retirement plans are 15 to 20 times less likely to save in tax-advantaged accounts.

If implemented, the Trump Account for adults may not be a novel concept, but it would leverage presidential authority to promote an underutilized savings option.

Auto Enrollment: A Key Consideration

Automatic enrollment is seen by policy experts as essential for increasing retirement savings among those least likely to save independently. However, lawmakers have often opposed auto enrollment, citing concerns about imposing requirements on employers, even when there is no cost involved.