President Trump announced a plan to provide private-sector workers without retirement plans access to tax-advantaged accounts, matching contributions up to $1,000 annually. The proposal is based on the Savers Match program starting in 2027, offering a 50% federal match for eligible workers. Many Americans have less than $1,000 saved for retirement.

The initiative aims to bridge the coverage gap for low- and moderate-income workers. This plan, scheduled to begin in 2027, will assist workers in saving for retirement, with federal matches of up to $1,000 for individuals and $2,000 for couples. Eligibility requirements include income limits for individuals and couples.

A growing number of states have enacted retirement savings programs for private-sector workers, with over 1 million workers opening accounts by the end of 2025. These programs provide a simple way for employees to save for retirement and gradually increase contributions. Eligible small businesses can receive a credit for establishing their own retirement plans.

Experts like Teresa Ghilarducci support the president’s effort to improve retirement savings, emphasizing the importance of providing access to workplace savings plans for all Americans. While details of the proposal are awaited, this move is seen as a step in the right direction towards addressing the retirement savings issue.

Read more at Yahoo Finance: Trump proposes new retirement accounts for workers without 401(k)s