{"id":514714,"date":"2026-03-04T23:21:29","date_gmt":"2026-03-04T23:21:29","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/514714\/"},"modified":"2026-03-04T23:21:29","modified_gmt":"2026-03-04T23:21:29","slug":"how-trumps-proposed-savings-account-aims-to-fix-a-gross-disparity-in-the-american-retirement-system","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/514714\/","title":{"rendered":"How Trump\u2019s Proposed Savings Account Aims to Fix a \u2018Gross Disparity\u2019 in the American Retirement System"},"content":{"rendered":"

President Donald Trump recently announced a plan to address what he called a \u201cgross disparity\u201d in America\u2019s retirement system.<\/p>\n

In the State of the Union address, he introduced his proposal to target the roughly 56 million Americans who lack access to employer-sponsored retirement plans, like 401(k)s. It could result in a new government-backed savings option that\u2019s modeled after the Thrift Savings Plan currently available to federal workers.<\/p>\n

The president pointed out that while typical 401(k) balances have climbed about $30,000 since he took office, millions of workers without employer plans aren\u2019t seeing those gains. His solution would create retirement accounts that follow workers from job to job.<\/p>\n

Furthermore, the federal government would provide matching contributions of up to $1,000 annually. According to CBS News<\/a>, a White House official said that private philanthropists would also be able to contribute to the new accounts.<\/p>\n

The plan would build on the Secure Act 2.0 signed by President Joe Biden in 2022. That legislation established a Saver\u2019s Match<\/a> program scheduled to launch in 2027.<\/p>\n

The retirement savings gap<\/p>\n

Americans are facing a retirement crisis. A study<\/a> by Clever Real Estate found that the average retiree in the U.S. believes they need roughly $824,000 to retire comfortably. But retirees lag behind that number by about $535,000. On average, they have only saved about $289,000.<\/p>\n

It\u2019s not looking great for those still working, either. According to the National Institute on Retirement Security (NIRS), the average American worker has less than $1,000 saved for retirement<\/a>.<\/p>\n

The problem hits lower-income workers especially hard. Nearly 79% of full-time workers earning less than $27,400 annually don\u2019t have access to any retirement plan, according to the Economic Innovation Group.<\/p>\n

Even workers who manage to save don\u2019t have large stockpiles. The median retirement balance for those with savings stands at just $40,000, per NIRS. That\u2019s a long way from the $824,000 retirees say is needed for a financially secure retirement.<\/p>\n

What this could mean for your retirement plans<\/p>\n

There\u2019s no telling when or if Trump\u2019s plan will become reality. And if you don\u2019t have retirement<\/a> savings, you can\u2019t afford to wait for Washington to take action, especially if retirement is around the corner for you.<\/p>\n

Individual retirement accounts are available to anyone with earned income, and even small contributions can compound significantly over time.<\/p>\n

If Trump\u2019s proposal does move forward, it could provide a meaningful boost for savers who have long been shut out of the current system.<\/p>\n

Once you have more than $100,000 in savings, get some advice from a pro. SmartAsset<\/a> offers a free service that matches you to a vetted, fiduciary advisor in less than five minutes.<\/p>\n","protected":false},"excerpt":{"rendered":"President Donald Trump recently announced a plan to address what he called a \u201cgross disparity\u201d in America\u2019s retirement…\n","protected":false},"author":2,"featured_media":514715,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":["post-514714","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-ca","tag-canada","tag-finance","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/514714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=514714"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/514714\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/514715"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=514714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=514714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=514714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}