economy
Trump's new executive order, with help from Congress, could increase U.S. retirement wealth up to 77%, researchers find
Trump's executive order created a new way for Americans to save for retirement and called on Congress to expand the parameters of the deal.
TL;DR
- President Trump signed an executive order creating TrumpIRA.gov for workers without employer retirement plans.
- The program offers federal matching contributions of up to $1,000 per year for low-income Americans through the Saver's Match.
- Roughly 56 million Americans lack access to employer-sponsored retirement plans.
- Researchers estimate that legislative expansion of the program could increase U.S. retirement wealth by up to 77% ($1.35 trillion) over 10 years.
- Key legislative proposals include expanding access, auto-enrollment, and increasing the value of matching contributions.
- Automatic enrollment is identified as a critical factor for increasing participation and retirement wealth.
- Consistent savings behavior over time is the most significant determinant of growing retirement nest eggs.