President Donald Trump unveiled a proposal that would expand retirement savings options for Americans who don’t currently have access to workplace plans.
Announced at his State of the Union address on February 24, the plan aims to extend retirement investment opportunities to workers without employer-sponsored programs, such as 401(k)s, a gap that often affects workers at small companies and low-wage jobs.
During the speech, Trump said: “Half of all working Americans still do not have access to a retirement plan with equal contributions from an employer (1). “To address this huge disparity, I am announcing that next year my administration will give these forgotten American workers… access to the same type of retirement plan offered to every federal employee. We’ll match your contribution up to $1,000 each year as we make sure all Americans can benefit from the stock market.”
Most Americans are not where they want to be in their retirement savings journey. Economic well-being data from the U.S. Department of Homeland Security’s Federal Reserve shows that only 35% of non-retired adults believe their retirement savings are on track.
Even if the proposal doesn’t move forward, millions of Americans are already saving for retirement without employer-sponsored plans. Here’s where the average employer falls short and what you can do if your job doesn’t offer a match.
According to the Economic Initiatives Group (EIG), a bipartisan public policy research firm, 42% of full-time working Americans—excluding government employees and the self-employed—do not have access to a workplace retirement plan, while 44.1% of the total do not participate in one and 50.5% of all workers do not benefit.(2) Workplace programs such as 401(k)s can automatically deduct contributions from wages and work. Employers have made saving easier by offering matching features that help workers save over time with little effort. Those without access to workplace plans also earn less. EIG reports that just over a quarter of American workers, by income, don’t have access to one—compared to 65.2% of the bottom half.
Trump’s proposal builds on changes already expected to begin in the coming years, including a federal “saver match” that would deposit state aid directly into eligible retirement accounts. It will replace the non-refundable “Sovereer’s Credit” in 2027. Under the match program, someone who saves $2,000 a year, for example, can receive up to $1,000 in matching funds. The benefit will mainly apply to low- and middle-income families.
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Although it’s not clear at this stage how the new savings accounts will work, it’s worth noting that federal government workers are able to save through the “Savings Savings Plan,” which provides low-cost investment options and matching grants.
The savings gap that the proposal is targeting is significant. Workers who saved in their employer-sponsored accounts had an average balance of $40,000 by the end of 2022, according to an analysis by the National Institute for Retirement Security (3). But among all employees, including those without savings, the balance dropped to $955.
Teresa Gilarducci, an economics professor at the New School who studies retirement security, told CNBC that expanding access to match-based retirement accounts could help low-income Americans build savings for the future (4).
“Many, many people who are left out of the system will be collecting for retirement,” Gilarducci said. They will also be able to reap the benefits of compounding.
For many families juggling housing costs, childcare, debt and other financial pressures, saving for the future may seem out of reach, but there are still ways to start saving for the future before those new accounts take effect.
A common option is to open an Individual Retirement Account, or IRA, which allows workers to save on a tax-advantaged basis outside of an employer’s plan. For 2026, individuals can contribute up to $7,500 a year, with additional catch-up contributions for those age 50 and older. Some savers also set up automatic withdrawals from their bank accounts to create the same consistency typically found in workplace retirement plans.
Gradually increasing contributions over time, such as a raise toward savings, a bonus, or a tax refund, can also help make sense of progress. It can also be helpful to review monthly expenses for small adjustments that may create additional room to save without requiring major lifestyle changes.
For those who are self-employed and do not have access to an employer’s pension plan, there are also options. Business owners and freelancers can open a self-employed 401(k), sometimes called a solo 401(k), which allows them to contribute as both an employee and an employer. For example, in 2026 individuals can defer up to $24,500 in compensation, or with catch-up contributions for those age 50 and older, while additional employer contributions are made.
Another option is the Simple Employee Retirement or SEP IRA, which allows self-employed workers to contribute up to 25% of their annual compensation or the lesser of the annual limit, which is $72,000 in 2026.
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NBC News (1); Economic Innovation Group (2); National Institute of Retirement Security (3); CNBC (4)
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