Feb. 25, 2026, 3:56 p.m. ET
President Donald Trump used his State of the Union address Feb. 24 to spotlight “Trump Accounts” and announced plans to roll out a new type of retirement plan – two initiatives aimed at helping Americans save.
The “Trump Accounts” refer to a federal savings program for American children under 18 set to launch July 5 this year. He also proposed creating a new retirement account designed for Americans without access to an employer match. The account would be similar to the Thrift Savings Plan offered to federal workers, according to a White House official.
“My administration will give these often-forgotten American workers, great people, the people that built our country, access to the same type of retirement plan offered to every federal worker,” Trump said. “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.”
He also pledged to “always protect” Social Security, Medicare and Medicaid.
What is Trump’s plan for a new retirement account?
Trump’s proposal for a new kind of retirement can be traced back to a 2021 white paper authored by Teresa Ghilarducci, a labor economist at the New School, and current National Economic Council Director Kevin Hassett.
The paper said evidence suggests if a retirement plan like the Thrift Savings Plan, combined with government matches, was available to all Americans, low- and middle-income households would generate “significantly more financial wealth” over time.
“We have a huge wealth inequality problem in our country, which actually means that we have a huge gap in financial security,” Ghilarducci said. “This is a good step towards actually bringing up the bottom, having everybody included in wealth building, which is basically security building.”
Nearly half of the private U.S. workforce, or roughly 56 million Americans, work for an employer that does not offer a traditional pension or retirement savings plan, according to AARP. Matching contributions for all of them may add up quickly.
The White House official said fortunately, an existing “Saver’s Match” enacted under the Secure 2.0 Act of 2022 set to take effect in 2027 and replace the Saver’s Credit taxpayers can currently claim on their annual returns, may provide a pathway for an annual match of up to $1,000. While future legislation, specifically the Retirement Savings for Americans Act, could help bolster the plan, the White House believes it can largely be implemented using existing administrative authorities.
Ghilarducci said Congress has already enacted the Saver’s Match as mandatory spending, meaning it would not be subject to discretionary spending decisions. Replacing the Saver’s Credit with the Saver’s Match is expected to expand benefits, particularly for low-income workers who owe little or no federal income tax, but it also means the U.S. deficit is likely to grow, she added.
While she said the administration is still figuring out the details, she expects enrollment for the new retirement plan to be as simple as checking a box on your tax return.
“Every low income workers knows, even a young one, knows they should be saving for retirement,” she added. “It’s just not incentivized. It’s not made easy. It’s not automatic. …The Trump executive order just eliminates so many of those administrative barriers.”
Are Americans saving for retirement?
Not enough.
The typical working-age American has $955 saved for retirement and nearly half of households have no retirement savings at all, according to the National Institute on Retirement Security’s Retirement in America 2026 report.
“Many of our retirement structures were created in the ‘70s. Any change and modernization is very welcome,” said Miklos Ringbauer, a certified public accountant in Los Angeles. “The big questions are if people will want to participate, or can participate, how easy it will be, or how hard it will be to enroll.”
Dan Doonan, the institute’s executive director, said Trump’s comments put a welcome spotlight on “the serious challenge” many American families are facing, noting it was one of the few moments during the president’s address that drew applause from both Republicans and Democrats.
“That bipartisan response reflects the gravity of the challenge and the growing recognition that strengthening Americans’ retirement security is an area where there is meaningful common ground,” Doonan said in a statement to USA TODAY.
What is a Trump Account?
The president first announced the “Trump Accounts” program in June 2025, pledging to make a one-time contribution of $1,000 to savings accounts for every child born in the U.S. between 2025 and 2028 who is signed up with a Social Security number.
Any parent or legal guardian with a child under 18 can sign up for an account, but only children born during his administration will be eligible for the $1,000 deposit. Like other retirement accounts, the money will be deposited into a mutual or index fund tied to the stock market’s performance.
During his address, Trump gave a shoutout to billionaire businessman Michael Dell and his wife, philanthropist Susan Dell, who he said donated $6.25 billion to fund Trump Accounts.
Several banks, financial institutions, businesses, and celebrities having pledged to match the government’s $1,000 contribution, meaning participants could receive significantly more than the one-time federal deposit.
How to set up a Trump Account
Parents or legal guardians interested in setting up a “Trump Account” for their child can do so by filing IRS Form 4547 online at trumpaccounts.gov or with their 2025 tax return.
The accounts don’t require families to make contributions, but they can deposit up to $5,000 per year per account.
Contributing: Daniel De Vise, USA TODAY
Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_
