Trump announces 401(k) plans with $1,000 match for workers whose employers don't offer them
The White House plans to create retirement-savings plans for workers who don’t have access to one through their employer, offering up to $1,000 a year in matching funds.
“Half of all of working Americans still do not have access to a retirement plan with matching contributions from an employer. To remedy this gross disparity, I’m announcing that next year, my administration will give these oft forgotten American workers … access to the same type of retirement plan offered to every federal worker,” Trump said during his State of the Union speech to Congress on Tuesday night. “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.”
About 56 million Americans lack access to a retirement plan through their employer, according to AARP.
Trump’s announcement comes as Americans are struggling to save for retirement. A recent report from the National Institute on Retirement Security found that the the median amount American workers have saved for retirement is $955 — which includes people who have nothing saved at all. Looking at workers who have some retirement savings, the median is $40,000. In addition, Social Security is facing insolvency in less than a decade if Congress doesn’t act to shore up its finances: The trust fund that pays out retiree and survivor benefits is expected to be depleted by the fourth quarter of 2032, at which point Social Security benefits would be cut by about 20%. The current average Social Security check is $2,071 a month.
https://finance.yahoo.com/news/trump-announces-401-k-plans-035600009.html
Most Americans no longer are offered a defined pension from their employer.
Also, many do not have the extra assets to invest. They live hand to mouth.
Where I worked had a 50 cents on the dollar match for their 401k. It was easy to exceed that $1000 trump is offering.
We would do better to make sure Social Security remains solvent instead of this silly gimmick
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