Trump Has a Proposal to Help Retirees-Here's How Real Financial Pros Actually Feel About It
During the president's State of the Union address, he shared a series of new ideas for America. One idea in particular that stood out was a proposal for a government-backed retirement plan available to Americans without employer-sponsored plans, such as gig workers and freelancers. The plan would include a 50 percent government match, up to $1,000.
And while the proposal echoes previous "concepts of a plan" for the president, the idea that there could be a path for all Americans earning less than the national median income to access a government-backed retirement plan seems like a no-brainer. I reached out to a few financial pros to see what they thought about the possibility of something like this coming to fruition. Here's what they had to say.
The After-Tax Savings Account Could Help More People Save for Retirement
As many as 78 percent of businesses that have fewer than 10 employees don't offer employer-based retirement plans, according to Sara Wright, CFP® Professional with Domain Money, who notes that part-time employees and contractors are also out of the loop here.
"In total, that's almost half of all private-sector employees, according to the AARP," she says, noting that incentivizing saving for retirement with the saver's match could be powerful enough to get more Americans to save for retirement.
Related: 10 States Are Temporarily Closing Social Security Offices. Is Your State on the List?
It Doesn't Offer as Robust an Impact as Traditional Savings Plans
While it may be enough to jump-start retirement savings for some, Noah Lewis, Financial Analyst at Scholar Financial Advising, says the plan may not be as powerful as some more traditional options...whether you have an employer match or not.
"I think in theory it's a good idea," Lewis says. "The main benefit compared to something like a Roth IRA is the government match. But it kind of stays more positive in theory, because the match is only $1,000, and that's only if someone is actually contributing to the account."
He says this will really only work if people opt to use it, and even then, "it's not going to be a massive game changer."
The Proposed Plan Comes With Some Risk
Another thing Lewis thinks the plan has going against it is the potential for long-term risk. "We're already dealing with the Social Security trust shortfall, and we're already running deficits while trying to fund that," he says. "So I don't really see the logic of adding something new on top of that without fixing Social Security first."
In short, he doesn't think that this is a real solution.
Lower-Income Americans Will Still Miss Out
Trump's plan was to reach those lower-income Americans who will struggle to retire once they are eligible. However, George Dimov, CPA, Founder, and CEO of Dimov Tax, says that this plan still leaves most of these folks out in the cold.
"The big problem I see is that you have to put money into the account before you can get the match," he says. "For a family that is already struggling to make ends meet and is $80 short every month, getting a 50 percent match, on no money, is still no money. This is the part that people who make policies keep ignoring."
Whether you think this proposal sounds great or if you feel like it needs more work, one thing appears to be certain: Americans are looking for better ways to save for retirement. And while suggestions like Trump's could be a good start, it still doesn't seem likely to go far enough to help the people who need it most.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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This story was originally published April 23, 2026 at 10:56 AM.