President Donald Trump’s proposal to give Americans without access to a workplace retirement plan an option to invest in a federal-style alternative similar to the Thrift Savings Plan is a smash hit, according to focus groups conducted by the Sentinel Action Fund.
During his State of the Union address, Trump proposed to give Americans without access to an employer-sponsored retirement plan such as a 401(k) access to a federal-style option similar to the Thrift Savings Plan (TSP) used by federal workers.
The president said that the plan would be available for the “forgotten American workers, great people, the people that built our country, access to the same type of retirement plan offered to every federal worker.”
“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,” he added.
Sentinel Action Fund, a grassroots super PAC, conducted swing state focus groups and found that swing voters strongly back the president’s proposal to expand retirement options for Americans.
One North Carolina low-propensity voter said, “It’s basically a 401k for companies that don’t provide it. That’s really good.”
One Ohio swing voter said, “At least it’s an investment in something worthwhile. You know, you can say, there’s so much spending that probably isn’t worthwhile. At least, you know, it’s helping you or your children or someone be able to retire rather than have to work until they’re 85.”
“I think we could actually spend a lot less on people who reach retirement age with no money by doing something like that,” another Ohio swing voter said.
Jessica Anderson, president of the Sentinel Action Fund, said that swing voters welcome the idea with arms wide open.
“President Trump’s new plan is designed to offer the workers who power our economy a piece of ownership in it. As the American workforce has changed over the last 30 years, it has become clear that the way Americans save and invest must also catch up. By offering these savings accounts to workers who don’t have access to employer-sponsored plans, this policy is opening the door for everyone to participate in the American Dream — and it is making everyone a stakeholder in the success of the economy,” Anderson told Breitbart News in a written statement.
She added, “This announcement is the next chapter in President Trump’s Golden Age, and as our latest focus groups found, a very welcome policy for voters across the country before they head to the polls this November.”
About 30 percent of the American workforce does not have access to an employer-sponsored retirement plan such as a 401(k), which are usually only available to large, established companies.
Americans also face a retirement savings dearth.
The National Center for Employee Ownership (NCEO) found that 43 percent of working-age Americans do not have enough retirement savings, and 36 percent of employed Americans do not have any retirement savings. The National Institute on Retirement Security stated that the average American worker has under $1,000 saved for retirement.
The American Association of Retired Persons (AARP) found that one in five Americans over 50 years old have no retirement savings and half worry they will not have enough to last in retirement.
Trump’s call for expanded retirement options thrilled those who have long championed the idea.
Rep. Lloyd Smucker (R-PA), a member of the House Ways and Means Committee, has long discussed the idea with Kevin Hassett, who serves as Trump’s director of the National Economic Council (NEC), of crafting legislation to expand retirement plan access for working Americans. Those discussions led to the introduction of the bipartisan Retirement Savings for Americans Act (RSAA), which he first introduced in 2022.
RSAA, like Trump’s proposal, would allow the federal government to match contributions for low- and middle-income workers, with the match to phase out at median income.
“I commend President Trump for prioritizing middle- and low-income Americans in his policy agenda, recognizing not only the affordability challenges families face in their daily lives, but also the growing retirement security crisis in our country. Too many hardworking Americans have zero dollars saved for retirement, and more than half lack access to a workplace savings plan,” Smucker told Breitbart News in a written statement.
The Keystone State Republican continued, “Ensuring every worker can access the same tax-advantaged retirement savings vehicles that many higher-income earners leverage has long been a priority of mine. I applaud the President for elevating this issue and I look forward to working with the White House to advance solutions like the bipartisan, bicameral Retirement Savings for Americans Act to help millions of Americans achieve a financially secure, well-earned retirement.”
Organizations such as the Economic Innovation Group, AARP, Charles Schwab, DoorDash, and Uber have cheered the legislation.
Other Republicans have also cheered Trump’s proposal.
Rep. Nick Langworthy (R-NY) said, “We are going to give the people who build this country the same type of retirement plan offered to every federal worker.”
Read the full article here