New Trump order seeks to close the retirement savings access gap

President Donald Trump recently issued an executive order aimed at improving access to retirement savings for millions of Americans who lack such benefits through their jobs.

The order, which the president first pitched at February’s State of the Union, directs the Treasury Department to launch a website to help individuals without employer-sponsored retirement plans access “high-quality, low-cost [Individual Retirement Accounts].” This website, which would be called TrumpIRA.gov, should launch by Jan. 1, 2027.

Additionally, the order would encourage certain low- and middle-income Americans to take advantage of a $1,000 savings match available from the federal government annually when they contribute to an IRA.

While retirement advocates applauded the move, they said meaningful improvements in Americans’ overall retirement security will require additional action by Congress, as well.

An imperfect system. While private sector retirement benefits have become more prevalent in recent decades, nearly one-half (47%) of all full-time and part-time US workers still lack access to an employer-sponsored retirement plan.

The Trump administration’s initiative seeks to close this access gap by pitching an initiative to help workers enroll in low-cost, private IRA retirement plans vetted by the federal government. Additionally, the order seeks to match eligible workers’ IRA contributions up to $1,000 annually through the Federal Saver’s Match, a provision of the Secure 2.0 Act which will be available starting in 2027.

Some 26 million workers are expected to gain access to a full or partial Saver’s Match as a result of this initiative, according to the Economic Innovation Group (EIG), a bipartisan public policy organization.

Additional support for small employers. The Trump administration’s program could be particularly relevant for small businesses, which are less likely to offer their own retirement benefits, HR Brew previously reported.

Still, groups like EIG said instituting policies such as automatic enrollment and default contributions would go even further in boosting retirement security among the workforce.

The success of the administration’s effort will depend on “whether participation is effectively driven at scale through mechanisms like auto-enrollment,” as well as “whether the marketplace offers IRAs with the kinds of features lower-income workers need, like emergency saving and the ability to accept employer contributions,” KC Boas, who leads the Aspen Institute Financial Security Program’s retirement initiative, said via email.