Trump pitches new retirement plan with a federal match of up to $1,000 per year — who could benefit

Millions of workers without access to a 401 or other workplace retirement plan could get a new way to invest — and an annual government match of up to $1,000 — under a proposal from President Donald Trump . "Half of all of working Americans still do not have access to a retirement plan with matching contributions from an employer," Trump said during his State of the Union address Tuesday. "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." Roughly 56 million Americans lack access to an employer-sponsored retirement plan at work, according to 2025 research from the Pew Charitable Trusts, an independent public policy nonprofit. The Trump administration plan would provide a universal savings account to workers, which would be portable if they switch jobs. How the new retirement accounts would work President Donald J. Trump delivers the first State of the Union address of his second term to a joint session of Congress in the House Chamber of the United States Capitol in Washington, D.C., on Tuesday, Feb. 24, 2026. Kenny Holston | The New York Times | Via Reuters The new accounts would work similarly to the Thrift Savings Plan , or TSP, a retirement savings and investment plan for federal employees that includes a government match and low-cost, index-based investment choices, according to the White House. How the proposed savings accounts will be taxed remains to be seen, but if they follow the TSP model, contributions could be made on a tax-advantaged basis . Under a traditional TSP, contributions count against income for an up-front tax break, while investors in Roth TSPs contribute post-tax money and can make tax-free withdrawals in retirement. Current TSP plan participants receive mat...