President Trump prepares to sign an executive order expanding access to retirement accounts via a new platform (TrumpIRA.gov), to enable more workers to claim a $1,000 government match.
Romina Boccia, director of budget and entitlement policy at the Cato Institute, is available to comment on the proposal:
Key points:
- The executive order directs the Treasury to launch a website allowing workers without employer plans to shop for private retirement accounts and access the Saver’s Match.
- The Saver’s Match created under SECURE 2.0 will provide a 50% match on up to $2,000 in retirement contributions (max $1,000), beginning in 2027. It’s only available to workers who have retirement accounts.
- The full match is limited to single filers earning under $20,500, phasing out completely at $35,500.
- The Joint Committee on Taxation estimated that the current Saver’s Match would reduce federal revenues by $9.3 billion from 2028–2032. If automatic enrollment doubled participation, costs could exceed $20 billion in the first five years alone.
- The order will reportedly task Treasury and the National Economic Council with drafting legislative recommendations that could include automatically enrolling workers and making more workers eligible for the match. Boccia covered relevant bipartisan legislation in a Washington Post op-ed this week: https://www.cato.org/commentary/trump-wants-help-forgotten-american-workers-retire-dont-be-fooled
Boccia’s Take:
“Expanding government-backed retirement accounts may sound appealing, but it ignores how lower-income households actually save — and fails to address the real retirement crisis: Social Security’s looming insolvency. Policymakers are layering new spending commitments, with uncertain benefits for lower-income households on top of a system already facing a $28 trillion shortfall.”
Romina can also speak to:
- Why automatic enrollment may backfire for low-income workers
- The political coalition (“bootleggers and Baptists”) behind the proposal
- Alternative approaches, including flexible universal savings accounts
- Why Social Security reform remains the most urgent priority
To speak with Boccia, please reach out to Emily at esalamon@cato.org
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