Summary
President Donald Trump announced a proposal to expand retirement savings options for private-sector employees who currently do not have access to employer-sponsored retirement plans. The plan involves a federal match of up to $1,000 annually for eligible workers, using a mechanism from a previously established law. The proposal aims to address the retirement savings gap affecting millions of American workers.
Key Facts
- President Trump proposed expanding retirement savings for workers without employer-sponsored plans.
- Around 56 million private-sector workers lack access to these retirement plans.
- The proposed plan would model after the federal Thrift Savings Plan.
- It involves an annual $1,000 federal match for eligible low-income workers.
- The plan uses the "Savers Match" mechanism from the SECURE 2.0 Act, passed in 2022.
- Nearly half of U.S. workers do not take part in workplace retirement plans, affecting their retirement preparedness.
- A study found the median retirement savings account balance is low, especially for those without plans.
