Trump Proposes New Retirement Savings Plan for Workers Without 401(k)s

The plan would offer tax-advantaged accounts and government matching contributions to help workers build retirement savings.

Published on Feb. 25, 2026

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President Donald Trump has proposed a new 401(k)-style retirement savings plan for private-sector workers who lack access to employer-sponsored retirement plans. The plan would be modeled after the federal government's Thrift Savings Plan and would offer tax-advantaged accounts, investment options, and government matching contributions of up to $1,000 per year to help workers build retirement savings.

Why it matters

Millions of private-sector workers, roughly 50% of the population, currently lack access to employer-sponsored retirement savings plans. This new proposal aims to address this 'gross disparity' and provide a way for more Americans to save for retirement, especially lower-income and middle-class workers.

The details

The new plan would be similar to the federal government's Thrift Savings Plan, offering tax-advantaged accounts, index-based investment options, and the ability for the government to match worker contributions up to $1,000 per year. While details are still sparse, the administration has indicated it plans to make the plan portable and allow for philanthropic contributions as well. The proposal appears to be based on the Savers Match program that was part of the 'Secure 2.0' legislation passed under the Biden administration, but Trump plans to modify the structure.

  • President Trump announced the proposal during his 2026 State of the Union address.
  • The Savers Match program that inspired this proposal is set to take effect in 2023 under the Biden-era 'Secure 2.0' legislation.

The players

President Donald Trump

The current president who has proposed a new retirement savings plan for workers without 401(k)s.

Thrift Savings Plan

The low-fee federal retirement savings plan that the new proposal would be modeled after.

Senate Minority Leader Chuck Schumer

The New York Democrat who accused Trump of simply repackaging the Biden-era Savers Match program.

Kevin Hassett

The National Economic Council Director who has previously advocated for a TSP-like plan for private-sector workers.

Teresa Ghilarducci

An economist with the New School for Social Research who co-wrote an op-ed with Hassett praising the Thrift Savings Plan.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The administration will have more announcements on the details of the new retirement savings plan in the coming weeks.

The takeaway

This proposal aims to address a significant gap in retirement savings access for millions of private-sector workers, potentially providing a new path for building retirement security. However, the details and differences from the existing Savers Match program remain to be seen.