Saving for the future has felt like an uphill battle for many Americans lately. Inflation is still up, gas prices aren’t budging, and many workers are cutting back on 401(k) contributions just to put more money in their pockets. But for roughly 56 million Americans, the problem isn’t just adjusting how much to save with each paycheck. It’s that they don’t have a retirement plan at work to begin with.

This “coverage gap” mostly affects small-business employees, part-time workers, and self-employed individuals. For these workers, there’s no easy set-it-and-forget-it way to save for retirement through a paycheck.

President Trump recently introduced a proposal to change this, and it could be pivotal for anyone who’s been left out of the traditional retirement savings system.

TrumpIRA.gov

In a move that appears to be following through on a plan mentioned in his February State of the Union address, President Trump signed an executive order to launch a new website called TrumpIRA.gov. The site, which is scheduled to go live next year, is designed to be a one-stop shop for workers without access to a 401(k).

The idea behind TrumpIRA.gov is to give private-sector workers access to the same type of retirement accounts that federal workers use through the Thrift Savings Plan. The Thrift Savings Plan features low-cost, high-quality retirement accounts, so to keep in line with this, the government is setting strict rules for the companies listed on TrumpIRA.gov:

• Low Costs: Fees are capped. The total annual expense ratio, which includes all management and administrative fees, can’t be higher than 0.15% of your balance.
• No Barriers: Companies can’t require a minimum contribution or a minimum balance to open an account.

This removes two of the biggest hurdles for new savers: high fees that stall growth and the “minimums” that often discourage people with modest incomes from even starting.

The Federal Saver’s Match

One of the most compelling parts of the new plan is the Federal Saver’s Match. Starting next year, the government will actually help savers build their balance by matching what they put in.

Those who earn less than $35,500 (or $71,000 for married couples) can get an extra 50% match on what they save. If someone puts in $2,000 a year, the government will add another $1,000 ($2,000 for married couples). This is basically a federal version of the popular “employer match” that people with workplace 401(k)s can access.

Financial Security Is More Important Than Ever for Americans

A recent study by Northwestern Mutual revealed that the “magic number” Americans think they need to retire comfortably has jumped to $1.46 million. This is a $200,000 increase from just last year.

The Northwestern Mutual study also revealed that nearly half of Americans don’t think they’ll be financially ready to retire, and roughly 48% are worried they might outlive their savings.

This new proposal aims to bridge the gap. Lowering the fees and providing a direct match make it easier for millions of people to start small and actually see their money grow. For those without a workplace retirement plan, it’s a significant step toward financial security.