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Trump signs order authorizing retirement accounts for more workers

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The accounts would cover gig economy workers, including rideshare drivers and freelancers

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

Updated:

key insights:

  • President Trump has signed an executive order aimed at expanding access to retirement savings accounts for American workers.
  • The initiative focuses on workers without employer-sponsored plans, including part-time and gig economy employees.
  • Officials say the program could broaden retirement coverage, but details on implementation and participation remain key for workers to understand.

After floating the idea earlier this year, President Trump has signed a new executive order designed to expand access to retirement savings accounts, targeting millions of Americans who currently lack employer-sponsored plans such as 401(k)s.

The order directs federal agencies to facilitate the creation of portable, tax-advantaged retirement accounts that workers can carry from job to job. 

The move is intended to address a long-standing gap in retirement coverage, particularly among part-time workers, independent contractors, and employees of small businesses that do not offer retirement benefits.

Who is eligible

According to the administration, eligibility will be broad. The program is expected to include:

  • Workers whose employers do not offer retirement plans
  • Gig economy workers, including rideshare drivers and freelancers
  • Part-time employees who may not qualify for traditional workplace plans
  • Employees of small businesses that opt into the program

Employers may have the option to automatically enroll workers in these accounts, though participation rules will depend on how federal agencies finalize the program’s structure.

How the accounts work

While the executive order sets the framework, agencies such as the Department of Labor and the Treasury are tasked with developing the specifics. Early indications suggest the accounts will function similarly to existing individual retirement accounts (IRAs), offering tax advantages and flexible contribution options.

Workers would be able to:

  • Contribute a portion of their paycheck automatically
  • Maintain the same account even when changing jobs
  • Choose from a limited set of investment options designed for long-term growth

The portability feature is central to the plan, aiming to reduce the loss of retirement savings that often occurs when workers switch employers.

How to take advantage of the program

Once implemented, workers can take several steps to benefit:

  1. Check eligibility through your employer or directly with program administrators. Employers may provide enrollment information, but individuals may also be able to sign up independently.
  2. Opt in or confirm automatic enrollment. If automatic enrollment is used, workers should review contribution rates and adjust them based on their financial situation.
  3. Set a contribution level. Financial advisors typically recommend saving at least 10–15% of income for retirement, though any consistent contribution can help build long-term savings.
  4. Review investment options. Most accounts will likely default to diversified, age-based funds, but workers should ensure their choices align with their risk tolerance.
  5. Monitor and adjust over time. As income or employment changes, contributions can typically be increased or decreased.

What it means for workers

Supporters say the initiative could significantly expand retirement access, especially for workers who have historically been left out of employer-based systems. 

Critics, however, note that executive orders cannot create entirely new programs without congressional support, meaning some aspects may depend on future legislation or regulatory action.

For now, the executive order signals a policy push toward broader retirement coverage. Workers interested in participating should watch for updates from federal agencies and their employers as the program moves from concept to reality.