Trump wants to give up to $1,000 a year to workers without 401(k)s to fix 'gross disparity' — how to save for retirement when you're going it alone

President Donald Trump unveiled a proposal that would broaden retirement-saving options for Americans who currently lack access to workplace plans.

Announced during his State of the Union address on Feb. 24, the plan aims to extend retirement investment opportunities to workers without employer-sponsored programs, such as 401(k)s, a gap that often affects employees at smaller companies and lower-wage earners.

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“Half of all of working Americans still do not have access to a retirement plan with matching contributions from an employer,” Trump said during the address (1). “To remedy this gross disparity, 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. We will match your contribution with up to $1,000 each year as we ensure that all Americans can profit from a rising stock market.”

Many Americans aren’t where they want to be in their retirement saving journey. Data from the Federal Reserve’s Economic Well-Being of the U.S. Households report shows that only 35% of non-retired adults believe their retirement savings are on track.

Even if the proposal doesn’t move ahead, millions of Americans are already saving for retirement without employer-sponsored plans. Here’s where the average worker falls and what you can do if your job doesn’t offer a match.

Why this proposal matters

According to the Economic Innovation Group (EIG), a bipartisan public policy research firm, 42% of full-time working Americans — excluding government workers and the self-employed — don’t have access to a workplace retirement plan, while 44.1% in total do not participate in one and 50.5% of all workers don’t benefit from an employer match (2). Workplace programs like 401(k)s can make saving easier by automatically deducting contributions from paychecks and offering employer-matched features that help workers build savings over time with less effort. Those without access to workplace plans also tend to earn less. The EIG reports only a quarter of the top half of American workers by income don’t have access to one — compared to 65.2% of the bottom half.

Trump’s proposal builds on changes already expected to roll out in the coming years, including a federal “Saver’s Match” that would deposit government contributions directly into eligible retirement accounts. This will replace the nonrefundable “Saver’s Credit” starting in 2027. Under the match program, someone who saves $2,000 annually, for example, could receive up to $1,000 in matching funds. The benefit would primarily apply to lower- and middle-income households.

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Although it’s unclear at this stage exactly how the new savings accounts will work, it’s noteworthy that federal government workers are able to save through the “Thrift Savings Plan,” which provides low-cost investment options and matching contributions.

The savings gap the proposal aims to address is substantial. Workers who had savings in their employer-sponsored accounts had a median balance of $40,000 as of late 2022, according to an analysis by the National Institute on Retirement Security (3). But across all workers, including those with no savings, the balance dropped to $955.

Build your savings without an employer plan

Teresa Ghilarducci, an economics professor at The New School who studies retirement security, told CNBC that expanding access to match-based retirement accounts could help low-income Americans start building savings for the future (4).

“Many, many people who are left out of the system will start accumulating for retirement,” Ghilarducci said. They will also be able to reap the benefits of compounding.

For many households juggling housing costs, child care, debt and other financial pressures, saving for the future may seem out of reach, but there are still ways to begin saving for the future even before these new accounts materialize.

One common option is opening an individual retirement account, or IRA, which allows workers to save on a tax-advantaged basis outside of an employer plan. For 2026, individuals can contribute up to $7,500 annually, with additional catch-up contributions available for those age 50 and older. Some savers also set up automatic transfers from their bank accounts to create the same consistency typically built into workplace retirement plans.

Gradually increasing contributions over time, such as directing raises, bonuses or tax refunds toward savings, can also help make progress feel more manageable. It can also be helpful to review monthly expenses for small adjustments that may create additional room to save without requiring major lifestyle changes.

For those who are self-employed and don’t have access to an employer retirement plan, there are also options. Business owners and freelancers can open a self-employed 401(k), sometimes called a solo 401(k), which allows them to contribute both as an employee and as the employer. For example, in 2026 individuals could defer up to $24,500 of compensation, or more with catch-up contributions for those age 50 and older, while making additional employer contributions.

Another option is a Simplified Employee Pension or SEP IRA, which allows self-employed workers to contribute up to the lesser of 25% of their annual compensation or a yearly limit, which is $72,000 in 2026.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

NBC News (1); Economic Innovation Group (2); National Institute on Retirement Security (3); CNBC (4)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.