Trump Outlines New Retirement Plan With Federal Match

Seventy-eight percent of businesses with fewer than 10 employees do not offer an employer-based retirement plan. Almost 80 percent of the workers who lack access to an employer-based retirement plan make less than $53,000 per year. When it comes to non-white employees, about 63 percent of Hispanic workers, 52 percent of Black workers and 44 percent of Asian American workers are missing out on a retirement vehicle through their employers. ​

To address this problem, AARP has endorsed proposed federal legislation, including the bipartisan Retirement Savings for Americans Act and the Automatic IRA Act, both of which would help improve retirement security for American workers. Nearly half of all private-sector employees do not have access to an employer-sponsored retirement savings program, Sweeney noted in his 2024 letter endorsing the Retirement Savings for Americans Act.

“We know that Americans are much more likely to save when they have access to retirement savings options at work,” he wrote. ​

On the state level, AARP has supported “work and save” programs such as state-facilitated automatic IRAs, that fill the gap left by employers who don’t offer a retirement vehicle. Nearly 1.2 million employees nationwide had enrolled in such “work and save” programs as of January 2026, with legislation, supported by AARP, enacted in 20 states. ​

A White House official said the president’s proposal would provide a new vehicle for eligible workers to save for retirement through a “universal, portable” account. The official said the $1,000 federal government match — called the Saver’s Match — could be made under a law passed in 2022 called Secure 2.0, which also focused on helping Americans save for retirement.

If implemented effectively, the proposal could significantly reduce the retirement coverage gap that affects tens of millions of low- and moderate-income workers, said Teresa Ghilarducci, director of the Wealth Equity Lab, a project of the New School that focuses on economic challenges facing aging populations.

“Expanding access is a meaningful step,” she said. “For decades, Congress has tolerated a system in which nearly half of full-time workers and most part-time and gig workers lack access to a workplace retirement plan.”

Supporting Social Security and Medicare

In addition to announcing the retirement savings option, Trump also pledged to support Social Security and Medicare.

“We’re also making it easier for Americans to save for retirement and under this administration, we will always protect Social Security and Medicare,” he said. ​

Polls show that Social Security is overwhelmingly popular across all age groups and political affiliations. As of January 2026, about 70 million Americans received Social Security payments, including about 54 million retirees and 7.1 million people with disabilities. The average retiree benefit in January was $2,019 per month. ​

The Social Security Administration’s chief actuary projects that the surplus in its trust fund for retirement and survivor benefits will be depleted in late 2032 unless Congress takes steps to shore up its financing through benefit cuts, additional revenue or a combination of the two. After that, Social Security could still make about 80 percent of payments, and Congress could take action to close the remaining funding gap.​ While Trump didn't address the projected shortfall, Congress has various options to fill that gap.

In his speech, Trump also touted a new tax deduction for older adults that was included in the One Big Beautiful Bill, the massive tax legislation that Congress passed in July 2025. ​The OBBB did not eliminate taxes on Social Security benefits, but it did include a new $6,000 deduction that could reduce or fully offset taxes on Social Security income for millions of older Americans.

The provision applies to people who were at least 65 years old at the end of 2025, and who meet certain income limits. ​

Individual filers with a modified adjusted gross income (MAGI) up to $75,000, or married couples filing jointly with a combined MAGI of up to $150,000, can claim the full $6,000 deduction. Individuals with incomes of up to $175,000 for single filers or $250,000 for married couples can claim a smaller deduction. ​

The temporary deduction runs through the 2028 tax year. AARP supported the inclusion of the tax deduction in the OBBB. ​​​