Washington, D.C. — President Donald Trump used his State of the Union address to announce a proposal aimed at expanding retirement savings options to millions of Americans who lack employer-sponsored plans.
Trump said his administration would offer workers without access to 401(k)s or similar benefits “the same type of retirement plan offered to every federal worker.” He added that the government would match contributions up to $1,000 per year, allowing participants to benefit from stock market growth.
According to White House officials, the proposal builds on provisions in the SECURE Act passed under former President Joe Biden, which is set to take effect next year and provides matching funds for workers who already have retirement accounts. The new initiative would establish accounts for those who currently have none, allowing individuals to opt in by checking a box on their tax return.
Teresa Ghilarducci, a labor economist at The New School who previously collaborated with White House adviser Kevin Hassett on early versions of the idea, described the expansion as significant, citing persistent gaps in retirement savings.
Roughly 50 million Americans lack employer-sponsored retirement plans. However, analysts note that the long-term solvency of Social Security remains unresolved, with the trust fund projected to face depletion in 2033 absent congressional action.
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