At Trump’s State of the Union Address, the President announced Americans without a company retirement plan, could potentially retire like federal workers do- with the government matching contributions up to $1,000.00 a year. Finance Expert Derrick Kinney says they’ll need to iron out the details. “Proposals like this sound great, until you must work out how it will work. Will it contribute to the debt? Will people participate? How easy is it for people to put money into it.” Kinney said.
He said the program could pay off 2-fold.
“When you give Americans more opportunities to save and there’s an incentive for them to do that- it could help save social security and give them a higher sense of security down the road.” He said.
Kinney says the bigger challenge is the economic affordability and national debt factors that must be considered.
During his speech, Trump pledged to protect Social Security, Medicare, and Medicaid.