Trump's Federal Retirement Account could expand coverage for uncovered workers

President Trump announced an executive action at the State of the Union to create automatic federal retirement accounts for workers without employer plans and to match contributions up to $1,000 per year; the move is designed to pair with the refundable Saver's Match under SECURE 2.0, which takes effect in 2027.

President Trump announced an executive action at the State of the Union to create a federal retirement savings option for workers who lack employer-sponsored plans. The proposal would use administrative authority to set up automatic accounts for uncovered workers and include a federal match of up to $1,000 per year. The plan is described as intended to pair with the refundable Saver's Match authorized by SECURE 2.0, scheduled to begin in 2027. Observers and the article place the action in the context of a long-standing coverage gap in the U.S. retirement system and debate over whether administrative steps can substitute for legislation. Key points: - The announcement calls for automatic federal retirement accounts for workers without workplace plans, with a federal match of up to $1,000 annually. - The action is meant to be paired with the refundable Saver's Match under SECURE 2.0, beginning in 2027, which matches up to 50% of the first $2,000 contributed (maximum $1,000) and deposits the match directly into retirement accounts. - At least 54 million U.S. workers lack access to an employer-sponsored retirement plan, according to Pew Charitable Trusts; the article cites large disparities by income decile in access. - The article notes research indicating that automatic accounts combined with a federal match can raise participation among low- and moderate-income workers when accounts are simple and automatic. - The piece frames the executive action as complementary to the bipartisan Retirement Savings for Americans Act (RSAA), which would require congressional approval to expand coverage and benefits. Summary: The executive action targets the persistent coverage gap by creating automatic accounts and linking them to a refundable federal match that begins under SECURE 2.0 in 2027. The article says the measure could increase participation but does not by itself change tax subsidies, Social Security financing, or broader questions of adequacy; broader reform would require legislation and further policy choices.