President Donald Trump used his State of the Union address Tuesday night to outline a new federal matching program for workers who do not have access to an employer-sponsored retirement plan, signaling another push to widen participation in markets ahead of November’s midterm elections.
As reported by Axios, the proposal would give tens of millions of Americans the option to enroll in an account modeled on the Thrift Savings Plan available to federal employees, with a federal matching contribution for eligible savers. The initiative is targeted at workers who lack a 401(k) or similar workplace plan and currently must take the extra step of opening an IRA on their own.
Trump said his administration would give “often forgotten American workers … access to the same type of retirement plan offered to every federal worker.” He added: “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.”
A White House spokesperson told Axios that the plan would build on Secure Act 2.0, the bipartisan retirement package enacted under former President Biden that itself updated legislation from Trump’s first term. A provision taking effect next year, called the Saver's Match, would already provide up to $1,000 in matching funds for lower and middle income workers who contribute $2,000 to an existing retirement account. The new proposal would go a step further by automatically opening the door for workers who do not have any plan today.
Instead of navigating account-opening on their own, eligible taxpayers would be able to opt in by checking a box on their tax return, according to progressive labor economist Teresa Ghilarducci of the New School, who has been briefed on the design. Ghilarducci said the concept “finally recognizes that most people don’t have anything saved for retirement, and they don’t save consistently.”
Roughly half of full-time private-sector workers – about 40.6 million people – lack access to any employer retirement plan, according to data cited by Treasury Secretary Scott Bessent. Coverage gaps are even wider among part-time workers, where close to four in five lack access to a workplace retirement arrangement. Those figures have driven a wave of state-run auto-IRA programs and repeated calls from policymakers to extend the reach of tax-advantaged saving.
Speaking to NBC after the speech, Bessent suggested the administration sees a path to enactment through the budget process. Asked how the plan would work and whether it needs standalone legislation, he said, “Well, we can do it through reconciliation.” He framed the effort as the president “coming back for working Americans. Those who have been left behind.”
For advisors and retirement providers, the concept raises both business and policy questions. A Thrift Savings Plan-style structure would likely concentrate flows in a short menu of low-fee index and bond options, while still leaving room for asset managers to compete to be included on the platform. Advisors serving small employers, gig workers, and solo practitioners will want to watch how eligibility rules, income thresholds, and default contribution levels are drafted.
The initiative lands in a broader campaign by the administration to pull more households into the stock market. It follows the creation of tax-free Trump accounts for children, which provide an automatic $1,000 Treasury contribution for US citizens born between January 1, 2025, and December 31, 2028, with some large employers already pledging to match that amount for their workers’ children.
Read more: Robinhood, Schwab to match $1,000 for employees’ Trump Accounts
Responding to the latest retirement savings pitch from the White House, the Investment Company Institute said the voluntary retirement framework “is strong and access continues to expand,” and that it looks forward to working with policymakers to “expand access for all Americans and increase choice within the proven employer-based system.”
The group also warned that “preserving and strengthening that framework is the most effective way to help more Americans save for a secure retirement, rather than shifting to a government-run one-size-fits-all approach.”
While details on the to-be-enacted plan remain scarce at this point, Carson Wealth advisor John McGowan sees it as possibly "a great opportunity for individuals to save for their future.
"Having the potential for a match would allow people to significantly increase their retirement savings over time, which could ultimately lower the reliance for people on social security as their sole income source in retirement," McGowan said in comments following the news.
The plan could give retirees an oppoortunity to enjoy retirement rather than extending their time in the workforce, he said, though they'd still need to jump in with eyes open.
"For this to work, education is crucial, so people understand the long-term benefits of savings in these plans," he said.
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