Legislative action could increase U.S. retirement wealth up to 77%, research finds

Key Points:

• President Donald Trump signed an executive order to create a new retirement savings option for workers without access to employer-sponsored plans, launching a website, TrumpIRA.gov, for enrollment in private IRAs with potential federal matching contributions.
• The new accounts will integrate with the Saver's Match program from the Secure 2.0 legislation, which offers up to $1,000 annually in matching funds for low-income savers, aiming to help the 56 million Americans lacking workplace retirement plans.
• The administration seeks congressional support to expand the program, with proposed legislation like the Retirement Savings for Americans Act and the Automatic IRA Act aiming to increase access, automatic enrollment, and matching benefits.
• Morningstar research indicates that combining automatic enrollment, increased matching contributions, and higher income eligibility could boost U.S. retirement wealth by up to 77%, potentially adding $1.35 trillion over 10 years, especially benefiting lower-income workers.
• Consistent, long-term participation in retirement plans is key to building wealth, with automatic enrollment identified as the most effective method to increase saver participation and retirement outcomes.