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Trump proposes new retirement accounts for workers without 401(k)s
Trump proposes new retirement accounts for workers without 401(k)s
Kerry Hannon · Senior Columnist
Updated Sun, March 1, 2026 at 7:36 PM GMT+1 5 min read
In his State of the Union speech Tuesday night, President Trump vowed to give private-sector workers without an employer-sponsored retirement plan access to new tax-advantaged accounts similar to those for federal employees.
"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," he said. "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."
This type of plan was first authorized in 2022 with the passage of the SECURE Act. Some changes will be announced in the coming weeks, but no further action from Congress is needed, a White House spokesperson told Yahoo Finance.
The president's pledge comes at a time when the typical American worker has less than $1,000 saved for retirement, according to a new report from the National Institute on Retirement Security.
One driving factor for that shortfall: Many workers lack access to employer-provided retirement plans. Roughly half of US workers don't have workplace plans that divert money straight from their paycheck into a retirement account and frequently include a matching employer contribution.
*President Trump delivers his State of the Union address to a joint session of Congress in the chambers of the US House of Representatives in Washington, D.C., on Feb. 24. (Nathan Posner/Anadolu via Getty Images) · Anadolu via Getty Images*
Trump's proposal "may reduce the coverage gap affecting millions of low- and moderate-income workers," Teresa Ghilarducci, a labor economist at the New School and the author of "Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy," wrote in an email. "Every worker should be covered by a retirement plan, in addition to Social Security, and enrolled automatically as they are in Social Security."
Trump's plan is based on the Savers Matchprogram that is due to start in 2027.
Under that program, the federal government will make a matching 50% contribution to an eligible worker's IRA or 401(k)/403(b) plan. The match — as much as $1,000 for individuals and $2,000 for couples — would come in the form of a federal tax credit. To be eligible for a full or partial match, individuals must earn less than $35,500; for couples, the limit is $71,000.
Read more: How much should I contribute to my 401(k)?
Ghilarducci, who has partnered with National Economic Council Director Kevin Hassett on developing solutions for the retirement savings dilemma, said a federal match "substantially increases participation among low- and moderate-income workers."
"This executive action does not change the voluntary architecture that has produced large wealth gaps," she cautioned.
"The state programs provide a simple, easy option so they can start saving quickly," said John Scott, retirement savings project director at Pew Charitable Trusts.
Eligible businesses with 50 or fewer employees can qualify for a creditequal to 100% of the administrative costs for establishing their own workplace retirement plan.
"I'm excited that the president chose to highlight the importance of providing access to workplace savings plans to all working Americans and the idea of providing a form of government contribution," Scott told Yahoo Finance after Tuesday's speech.
"While we can't make any judgments until we see the details of the proposal, these pronouncements as a whole are a step in the right direction," he said.
Scott added, "Pew has worked very hard to extend workplace retirement savings opportunities at the state level. So, the President's comments on improving retirement savings are appropriate and welcome."
Have a question about retirement? Personal finances? Anything career-related? Click here to drop Kerry Hannon a note.
Social Security receives only a passing nod under the 'protect' category
In his speech, the president gave merely a passing mention to the state of Social Security. "We will always protect Social Security, Medicare, Medicaid," Trump said.
That's too bad, because it's a massive concern: Social Security's reserves could vanish in seven years, according to the latest projection for the Old-Age and Survivors Insurance Trust Fund, outlined in the 2025 Social Security and Medicare Trustees annual report.
At that point, if no adjustments are made, the entitlement program's trust fund will be able to pay out just 77% of benefits to seniors.
This issue is crucial and cuts to the core of Americans' financial security in retirement. For about half of seniors, monthly Social Security benefits provide at least 50% of their income, and for about one in four seniors, they provide at least 90% of their income.
Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky and X.
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