For many workers, saving for retirement is made harder by the absence of a 401(k) match or any type of employer-sponsored retirement account at all. An estimated 56 million people lack a workplace retirement plan, according to Pew Charitable Trusts research published in 2025. For those without a plan, missing out on employer matching contributions is just one obstacle in saving and investing for the future. Figuring out how to set up an effective plan is also a huge hurdle.
The good news is, there is a proposed solution on the table put forth by President Donald Trump that could change the way people save for retirement if they don’t have a workplace plan. It could make growing your nest egg much easier, especially as the government is willing to contribute some cash to help Americans have the financial security they deserve in their later years.
Here’s how President Trump wants to change the way you save for retirement
President Trump addressed the issue of inadequate retirement savings at the State of the Union on February 24, 2026. After pointing out that around half of all working Americans lack a retirement savings plan at their jobs, President Trump announced that he’d be opening up the plans offered to government workers in the coming year to all workers in order to allow everyone to make investments in their future.
“Half of all working Americans still do not have access to a retirement plan with matching contributions from an employer,” President Trump said in the State of the Union address. “To remedy this gross disparity, I’m announcing that next year my administration will give these often-forgotten American workers … access to the same type of retirement plan offered to every federal worker. 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.”
What would these new retirement savings accounts look like?
Currently, it is unclear exactly how President Trump plans to move forward with offering the new savings plans. There is a possibility that the President could put a law in place through the reconciliation process, which would not require a filibuster-proof majority. Because the proposal would provide broader access to retirement savings options for all Americans, it is also possible that it could get bipartisan support and pass through regular order as a standalone bill.
However, the federal retirement savings plan that President Trump was likely referring to is called the Thrift Savings Plan, and it allows employees of the federal government to make investments in affordable index-based investment funds. TSP plan participants who work for the government are able to choose between either a traditional account (that provides an up-front tax break) or a Roth account that they contribute to with after-tax dollars.
If President Trump offers this plan to a wider group of Americans, they would likely have the same choice of when to claim their tax savings for retirement investing, although the promised $1,000 matching contribution from the government would likely be lower than the match TSP employees currently enjoy, which generally caps out at 5% of each employee’s salary.
Workers will need to watch for movement on a law that provides them with these new retirement savings benefits so they can begin taking advantage of these accounts when and if they become available.
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