The retirement savings landscape has changed dramatically over the past 50 years, starting with the introduction of traditional IRAs in 1975. The 1980s and ’90s brought 401(k)s, other workplace plans, and Roth IRAs; the early 2000s welcomed health savings accounts (HSAs); and over the last decade, state-sponsored retirement savings plans came into existence. Most recently, 2025 introduced 530A accounts (also known as “Trump Accounts”), which could have a positive impact on wealth-building for some of _ the youngest Americans. How might these and other developments affect tomorrow’s retirees?
Automatic features: In early December 2025, The Wall Street Journal reported that the number of “401(k) millionaires” reached the highest level ever, with more plan money invested in the stock market than ever before. One contributing factor could be the increase in automatic and default plan features over the past two decades. Designed to help make work-based retirement saving easy, such features include automatic plan enrollment, auto contribution increases, and diversified default investments that include stocks.
State-sponsored plans: Just 54% of businesses with fewer than 50 employees offered a retirement plan in 2024. In recent years, the federal government has tried to address this through tax benefits designed to encourage small businesses to adopt plans. Interestingly, state legislation may have an even stronger impact. Why? Unlike federal incentives, many current state laws require employers to offer a retirement savings plan. As of January 2026, 20 states have enacted state-sponsored retirement programs, growing at the rate of one to two per year since 2012.
Saver’s Match: The federal government has encouraged workers to take charge of their own futures. Currently, low-income workers receive a federal tax credit for saving in a workplace plan or IRA. However, beginning in 2027, this Saver’s Credit will be replaced by a Saver’s Match. Through this program, the federal government will match 50% of an individual’s contributions up to $2,000 (maximum $1,000 match), to be invested directly into their retirement accounts. Income limits apply.
530A accounts: Beginning in July 2026, parents and guardians may open these new accounts to help children get a head start on the road to retirement. Employers, parents, and others may make contributions to the accounts for any eligible child under 18. Moreover, for all eligible children born between January 1, 2025, and December 31, 2028, the federal government will make one-time $1,000 contributions.
When viewed together, automatic plan features, state-mandated plans, the Saver’s Match, and 530A accounts paint a potentially bright picture for today’s younger generations; however, legislators will need to ensure that programs are designed to be easy to use and easy to understand. Awareness and education will be keys to success.
The information in this newsletter is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2026 Broadridge Financial Solutions, Inc.
