How to Save for Retirement If You Don’t Have a Workplace Plan
With nearly half of American workers lacking access to employer-sponsored retirement plans such as 401(k)s, saving for retirement can seem daunting. President Donald Trump recently announced plans to introduce a new type of retirement account aimed at workers without workplace plans, including a potential government match of up to $1,000 annually. While details and timelines remain uncertain, there are effective ways for individuals to start saving for retirement now, using existing tax-advantaged options and government incentives.
Trump’s Proposed Retirement Account for Workers Without Employer Plans
During his 2026 State of the Union address, President Trump highlighted that approximately 50% of American workers do not have access to retirement plans with employer matches. To address this disparity, he proposed a new retirement savings account available to these workers, modeled after plans offered to federal employees. His administration aims to provide matching contributions up to $1,000 per year as an incentive for saving.
Although the proposal promises expanded access and government matching contributions, the exact design and rollout timeline remain unclear. Treasury Secretary Scott Bessent has hinted that the plan could pass through reconciliation, but it may take time before workers can benefit from the new accounts.
The Current Retirement Landscape Without Workplace Plans
For the millions of workers without access to employer-sponsored plans, saving for retirement relies heavily on individual retirement accounts (IRAs). Options available today include:
- Traditional IRAs: Contributions may be tax-deductible upfront, reducing taxable income for the year. Taxes are paid upon withdrawal in retirement.
- Roth IRAs: Contributions are made with after-tax dollars, but qualified withdrawals during retirement are tax-free, subject to age and holding period requirements.
For 2026, individuals under age 50 can contribute up to $7,500 annually to either a traditional or Roth IRA (and $8,600 for those 50 and older). However, these contribution limits are significantly lower compared to workplace accounts like 401(k)s, which allow contributions up to $24,500 for those under 50 in 2026. ### Government Incentives to Encourage Retirement Saving
Currently, certain low- to moderate-income savers may qualify for the Saver’s Credit—a non-refundable tax credit worth up to $1,000—when they contribute to retirement accounts. Eligibility and credit amounts depend on income and filing status. However, many eligible taxpayers do not claim it, partially because it only offsets taxes owed and does not provide a refund.
Starting in 2027, the Secure 2.0 Act will expand this benefit with the Saver’s Match, a refundable credit that directly matches 50% of retirement contributions up to $2,000 for qualifying low-income workers. For example, eligible individuals making $20,000 or less can receive up to a $1,000 government match annually, regardless of their tax liability status. This change is expected to provide a significant boost to household retirement savings, especially for those without access to employer plans.
Strategies to Start Saving for Retirement Now
Experts suggest that workers without workplace retirement plans take advantage of the following strategies to build retirement savings:
- Open and Max Out an IRA: Choose between a traditional or Roth IRA based on your tax situation and financial goals. Maximize contributions within current limits.
- Benefit from the Saver’s Credit: If you qualify, don’t overlook the Saver’s Credit when filing taxes to reduce your tax liability.
- Consider Self-Employment Retirement Accounts: If you have freelance or side income, explore options like SEP IRAs or Solo 401(k)s, which allow higher contribution limits.
- Plan for Upcoming Changes: Keep an eye on policy updates like the Saver’s Match and President Trump’s proposed accounts that might offer additional matching benefits.
- Automate Savings: Set up automatic contributions to IRAs or investment accounts to foster disciplined, ongoing saving.
Looking Ahead
While President Trump’s plan to introduce retirement accounts with matching contributions aims to address a significant coverage gap, individuals can start securing their financial future today by utilizing available tax-advantaged accounts and government incentives. Financial advisors highlight that any amount saved, especially with compounding returns, can positively impact retirement readiness.
For those seeking to improve workplace success alongside financial health, CNBC offers resources and courses focused on communication and leadership skills. Meanwhile, staying informed about evolving retirement policies and tax benefits will help you maximize your efforts toward a secure retirement.
This article is based on current information as of early 2026 and is intended for general guidance. Consult a financial advisor or tax professional to tailor retirement savings strategies to your personal circumstances.