Trump proposes retirement savings plan for Americans without one

Americans who don’t have access to a 401(k) account through their employer could see that change under a proposal announced by President Donald Trump during his State of the Union address Tuesday night.

During his speech, Trump announced plans to offer Americans without 401(k) accounts the opportunity to access a plan like those available to federal workers.

Trump didn’t go into the specifics of the proposal, but he pledged to have the federal government match each participant’s contribution up to $1,000 annually. With the stock market hitting record highs, the president said, the opportunity to participate in a retirement account would “ensure that all Americans can profit from a rising stock market.”

Treasury Secretary Scott Bessent indicated that Congress could use the budget reconciliation process to advance Trump’s retirement proposal.

The secretary added that details of the plan would be rolled out “in the coming weeks and months.” He described the proposal as a tool to help working Americans “who have been left behind.”

About 40.6 million full-time private-sector workers in the U.S. – about half of this workforce sector – had no access to an employer-provided retirement plan as of November, according to the bipartisan Economic Innovation Group.

Industry groups praise Trump proposals

Meanwhile, industry groups praised many of the proposals Trump outlined in last night’s speech.

The National Association of Insurance and Financial Advisors said it shares President Trump’s goal of helping more Americans achieve financial security and build stronger retirement savings.

“Expanding access to retirement savings opportunities through both employer-sponsored plans and individual savings solutions is critical to addressing Americans’ growing concerns about their long-term financial futures,” said NAIFA President Christopher L. Gandy. “NAIFA looks forward to learning more about the administration’s proposed retirement savings initiative and working with policymakers to strengthen awareness, understanding, and use of the retirement plans and financial tools already available to workers and families.

“Financial professionals play an essential role in helping Americans translate new savings opportunities into real financial progress. Advisors provide education, personalized guidance, and long-term planning that help individuals make informed decisions and stay on track toward retirement security,” Gandy said.

'Lasting financial security'

That same guidance will be critical as families navigate Trump Accounts, another initiative highlighted by President Trump and designed to help children begin building wealth early in life. Just prior to the State of the Union address on Tuesday, Gandy met with Treasury Department officials to discuss the important role financial professionals will play in helping families understand and effectively use these accounts to secure brighter financial futures for the next generation.

NAIFA recently submitted formal comments to the IRS emphasizing that financial professionals are essential to the long-term success of Trump Accounts. NAIFA encouraged policymakers to ensure families have access to professional guidance, broader investment flexibility, and clear regulatory treatment so these accounts can achieve their full potential as lifetime savings vehicles.

“Public policy can create opportunity, but trusted financial guidance helps families turn opportunity into lasting financial security,” Gandy said. “NAIFA members stand ready to help Americans navigate new savings options and build confident financial futures for themselves and their children.”

Finseca CEO Marc Cadin issued a statement praising the retirement plan.

“We applaud President Trump for raising the national conversation around financial security in his State of the Union address,” he said.

“The President’s message reinforces a simple truth: financial security does not happen by chance — it requires a plan. Finseca looks forward to working with the administration to expand access to financial planning and help more American families gain peace of mind.”

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