Trump Proposes New Retirement Account for US Workers Without 401(k) Access

During his State of the Union address on Feb. 24, President Donald Trump said he plans to create a new retirement program that would give Americans without 401(k) plans access to an account.

Approximately 56 million Americans lack access to an employer-sponsored retirement plan, according to the Economic Innovation Group. This has left many workers missing out on the stock market’s record-breaking performance over the past 15 years.

To correct this “gross disparity,” Trump announced that his administration would match Americans’ 401(k) contributions by up to $1,000 each year, “as we ensure that all Americans can profit from a rising stock market.”

“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,” Trump said.

The Trump administration may be building on the current Savers Match program introduced in 2022 retirement-reform legislation—The Secure 2.0 Act—and signed by then-President Joe Biden.

This proposal would be similar to the Thrift Savings Plan that federal workers currently have. This is the federal government’s version of a 401(k), a defined-contribution retirement savings plan for government workers and members of the uniformed services.

It would also be in addition to the Trump Accounts unveiled last month.

Trump Accounts provide eligible U.S. citizens born between 2025 and 2028 with a $1,000 Treasury-funded seed account. Parents and families may add up to $5,000 per account annually.

“This is something that’s so special [and] has taken off and gone through the roof,” Trump said.

In the longest State of the Union address on record, the president touted the recent record-breaking milestones for the leading stock market benchmarks.

“Since I took office, the typical 401(k) balance is up by at least $30,000—that’s a lot of money,” the president said.

The blue-chip Dow Jones Industrial Average recently hit 50,000 for the first time, while the broader S&P 500 reached 7,000.

U.S. stocks have struggled as of late, driven by trade policy uncertainty and fading enthusiasm over artificial intelligence.

Trump blamed the struggles on last week’s Supreme Court ruling against his global tariffs.

“I used these tariffs, took in hundreds of billions of dollars to make great deals for our country—both economically and on a national security basis,” he said. “Everything was working well.

“And then just four days ago, an unfortunate ruling from the United States Supreme Court.”

Trump also reaffirmed his commitment to protecting Medicare and Social Security.

“[Democrats] are not protecting it for our seniors,” he said. “We will always protect Social Security, Medicare, and Medicaid.”