Trump’s New Executive Order Targets 42% of Americans Without Employer Retirement Plans — What It Means for You

President Donald Trump issued an executive order focused on increasing savings for the retirement of American citizens, especially among those who do not get to benefit from the retirement plans offered by their respective employers. As such, federal agencies would be expected to help the citizens identify other ways through which they can retire comfortably.

The decision is based on data from the Economic Innovation Group, a bipartisan non-profit. Their figures show that about 42 percent of America’s full-time workers lack employer retirement plans. This step comes after data from the Economic Innovation Group, a bipartisan public institution, showed that 42 percent of the country’s full-time private sector workers lack employer-provided retirement plans. The new executive order will prompt the administration to create a website called TrumpIRA.gov. The website will enable people to find out how to open their own managed retirement account, popularly referred to as an IRA.

During the signing ceremony at the Oval Office, Trump stated, “For millions of Americans who lack employer-sponsored plans, this will be really revolutionary, because they’ll be covered. To remedy this gross disparity, I’m announcing that next year my administration will give these often-forgotten American workers, great people, the people who built our country, access to the same type of retirement plan offered to every federal worker.”

The president also instructed the Treasury Department to promote the Saver’s Match program, according to Barron’s. This program is part of a 2022 law that requires the government to match up to $1,000 in retirement contributions for workers earning less than $35,000 a year. The executive order focuses on private options — a change in scope from previous administration goals. 

Federal employees currently use the Thrift Savings Plan, or TSP. This plan provides low-cost index funds. These are portfolios of stocks or bonds that track a specific market index. It also includes government matching contributions. Treasury Secretary Scott Bessnet said that expanding TSP to the general public would likely require action from Congress. Bessnet suggested that lawmakers could use a process called reconciliation to pass such a law. Reconciliation is a legislative process that allows certain tax and spending bills to pass with a simple majority, avoiding a filibuster.

At the signing event, Trump said he expects Congress to pursue further legislation this year. He said the goal is to expand the federal retirement savings match to include Americans who are not in the low-income bracket. According to Semafor, the administration previously considered reviving “myRA” accounts, a program started by former President Barack Obama. Those accounts only allowed investments in Treasury savings bonds. The first Trump administration ended that program, citing a lack of public demand. 

Earlier this year, the Treasury Department announced that five million children had been enrolled in the “Trump Accounts,” according to CNBC. These are child savings accounts created by recent tax laws. According to the IRS, the program provides a $1,000 government contribution for U.S. citizens born between 2025 and 2026. 

However, the administration expects the TrumpIRA program to be fully operational by next year. The president said this initiative is part of a broader effort to support the American workforce and strengthen the national economy.