|
|
by IANS |
Washington, May 1 (IANS) US President Donald Trump signed an executive order aimed at expanding access to retirement savings accounts for millions of Americans, particularly low-income workers and those without employer-sponsored plans.
Calling it a “historic executive order,” Trump said the initiative would allow Americans to access retirement accounts similar to those available to federal employees.
“This afternoon, I'm thrilled to sign a historic executive order expanding access to high-quality retirement savings accounts for millions of Americans,” he said.
According to Trump, low-income Americans could receive “up to $1,000 per year in matching funds deposited directly into their accounts.”
He described the programme as transformative for workers outside traditional employment structures. “For millions of Americans who lack employer sponsored plans this will be really revolutionary because they'll be covered,” he said.
Trump illustrated the long-term impact with a projection. “If a 25 year old… invests just $165 a month… they will have an estimated $465,000 in their account by the time they're 65 years old,” he said, adding, “In other words, they'll be rich.”
National Economic Council Director Kevin Hassett said the policy targets structural gaps in retirement savings access. “What you've done here is you've given the Match to low income people with incomes below $35,000,” he said.
Hassett added that the administration is already working on expanding eligibility. “We're working with Congress to significantly expand this program,” he said, noting that discussions include extending benefits to middle-income Americans.
Trump acknowledged that further expansion would require legislative approval. “To take it to the next level, we need Congressional approval… it should be bipartisan,” he said.
The programme will also allow charitable contributions into individual retirement accounts, broadening participation beyond government matching. Hassett said, “We've also made it clear that in the TrumpIRA charities can contribute to other people's accounts as well.”
Trump linked the initiative to broader economic performance, pointing to job growth and investment. “More people are working right now than at any time in the history of our country,” he said.
The US retirement system has long relied heavily on employer-based plans, leaving gig workers and informal labour segments underserved. Efforts to expand access have gained bipartisan attention in recent years.
Latest News