President Donald Trump used his State of the Union address to unveil a new retirement savings initiative aimed at millions of Americans who lack access to employer-sponsored plans.
After highlighting record stock market gains, Trump said he wants more workers to directly benefit from market growth — especially those who do not receive retirement matching contributions through their jobs.
“Half of all working Americans still do not have access to a retirement plan with matching contributions from an employer,” Trump said. “To remedy this gross disparity, I’m announcing that next year, my administration will give these often forgotten American workers — great people, the people that built our country — access to the same type of retirement plan offered to every federal worker. We will match your contribution with up to $1,000 each year as we ensure that all Americans can profit from a rising stock market.”
According to administration figures, roughly 40.6 million full-time workers lack access to a retirement plan, and nearly 51% do not receive an employer match. The White House argues the new proposal could help close that gap.
A White House official said the accounts would function similarly to the federal government’s Thrift Savings Plan, or TSP, which operates much like a 401(k). Participants would be able to contribute pre-tax or after-tax dollars within IRS limits and select from several investment options, including government securities, bonds, the S&P 500, small- and mid-cap U.S. stocks, international stocks, and lifecycle funds.
Unlike the TSP, however, funding for the matching contributions would rely on the existing “Savers Match” created under the bipartisan SECURE 2.0 law. That provision allows the federal government to match up to $1,000 for eligible savers. The proposed program would create a new structure enabling workers to keep and use the accounts even when changing jobs.
Critics have questioned whether current law provides sufficient authority to fully implement the plan without additional congressional action. The White House has acknowledged that further legislation would likely be needed to strengthen and expand the framework.
The proposal also envisions private investors and philanthropists contributing to the accounts, similar to how the administration structured its “Trump Accounts” investment program for children. That initiative has included significant private backing, including a multibillion-dollar commitment from Michael and Susan Dell. The planned White House ballroom project has likewise been structured around private funding, with contributions reportedly exceeding $300 million.
If implemented as outlined, the administration estimates that up to 56 million workers who currently lack adequate retirement coverage could gain access to a low-fee, government-backed savings vehicle with annual matching contributions.
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