Industry Groups Respond to Trump’s Retirement Plan for Workers Lacking 401(k) Access
Industry groups are responding to President Donald Trump’s announcement that workers without access to employer-sponsored retirement plans could receive a boost from the government.
During his State of the Union address on Tuesday night, Trump said his administration would match contributions for workers without an employer-sponsored retirement plan. Starting next year, the government would match contributions of up to $1,000 each year, Trump stated.
“I’m announcing that next year my administration will give these often-forgotten American workers… access to the same type of retirement plan offered to every federal worker,” he said during the address.
While Trump did not provide any details on how his administration would implement the program, it’s speculated that he would revive the MyRA program originally introduced by President Barack Obama. Proposed during Obama’s State of the Union Address in 2014, MyRA programs were aimed at helping workers save for retirement and ultimately brought in 30,000 participants. Trump would later close the program in 2017, citing high costs.
It’s also possible that the Trump administration’s new plan would be paired with the Saver’s Match, a federal matching contribution set to debut in 2027 for low- to moderate-income workers established under SECURE 2.0, experts speculate.
Trump’s SOTU comments also hinted that the new plan could share some similarities to the government’s popular and successful Thrift Savings Plan for federal workers.
Industry reactions
Following the address, several industry groups released statements commending the announcement, from the Investment Company Institute (ICI) to the American Retirement Association (ARA).
“The US voluntary retirement system is strong and access continues to expand. ICI looks forward to working with the administration to build on that strength—expanding access for all Americans and increasing choice within the proven employer-based system that serves tens of millions of workers well, with easily accessible IRAs available to self-employed workers,” said the ICI in a statement. “Preserving and strengthening that framework is the most effective way to help more Americans save for a secure retirement, rather than shifting to a government-run one-size-fits-all approach.”
In a post on LinkedIn, ARA CEO Brian Graff said the program could be modeled after the MyRA program, “but substantially reformulated from a branding and behavioral economic standpoint,” that would include “significantly better, low cost investment options tied to the markets,” “integrates the SAVERs Match,” and targets “uncovered workers and particularly independent contractors who largely operate outside the existing retirement savings system.”
Separate announcements from other groups include the American Council of Life Insurers (ACLI), the Insured Retirement Institute (IRI), and the National Association of Insurance and Financial Advisors (NAIFA).
“Helping people build financial security through retirement is a priority for life insurers. We backed the bipartisan SECURE Act signed into law by President Trump in 2019. This landmark retirement legislation—the first in 13 years—gave 12.6 million more workers, including nearly 6 million from small businesses, access to retirement plans. We’re ready to build on the progress of the SECURE Act, SECURE 2.0 that was enacted in 2022, and the Trump accounts created last year to further strengthen Americans’ retirement security and turn hard-earned savings into lasting financial stability.” – ACLI President and CEO David Chavern
“Expanding access to retirement savings opportunities through both employer-sponsored plans and individual savings solutions is critical to addressing Americans’ growing concerns about their long-term financial futures. NAIFA looks forward to learning more about the administration’s proposed retirement savings initiative and working with policymakers to strengthen awareness, understanding, and use of the retirement plans and financial tools already available to workers and families.” – NAIFA President Christopher L. Gandy
“IRI is eager to learn more details of President Trump’s proposal and discuss it with our members. The proposal offers an opportunity to continue advancing bipartisan dialogue with Congress and to build on the success of the SECURE Act, which President Trump signed into law, and the SECURE 2.0 Act. Both laws made significant progress to enhance retirement security.” – The Insured Retirement Institute
SEE ALSO:
• Trump Floats New Retirement Plan for Workers Without 401(k)s During State of the Union
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.