President Donald Trump signed an executive order Thursday that put some meat on the bones of a retirement savings proposal he introduced in his State of the Union address in February.
The proposal is intended to help close the so-called retirement coverage gap, which has left behind more than 50 million mostly low- and moderate-income earners in the private sector. They are the workers who have neither a defined-benefit employer pension nor an easy, subsidized way to save for retirement at work.These workers include employees of small businesses, part‑time workers, independent contractors and self-employed workers. An estimated 78% of businesses with fewer than 10 employees do not offer an employer-based retirement plan, according to AARP. And nonwhite workers are among the most likely not to have access.Trump said starting next year, workers will be able to access a website – TrumpIRA.gov – where they can open a “new, low-cost IRA account. You’ll then be able to access the same type of retirement accounts that federal employees enjoy through the Thrift Savings Plans,” Trump said.
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