Expanding Retirement Access: What PEO Clients Should Know

Recent reports indicate that Donald Trump plans to sign an executive order aimed at expanding access to retirement savings options for workers whose employers do not currently offer a plan. The need for expanded access is well documented. According to the U.S. Bureau of Labor Statistics, approximately 72% of private industry workers have access to employer-sponsored retirement benefits, with significantly lower access among small employers. Even when plans are available, only about half of workers enroll. As a result, an estimated 56 million Americans still lack access to workplace retirement savings options.

What’s Changing

The proposed order is designed to address a significant gap in the workforce: many employees—particularly those working for small and mid-sized businesses—do not have access to employer-sponsored retirement plans.

Rather than introducing a new government-run plan, the approach is expected to focus on:

• Creating a centralized platform where individuals can explore and enroll in private retirement savings options (e.g., IRAs)

• Promoting low-cost, easy-to-access plans with minimal barriers to entry

• Supporting participation through the upcoming federal “Saver’s Match,” which will provide matching contributions for eligible lower-income workers

At this time, the executive order does not create new employer mandates or compliance obligations. However, it may influence future policy developments and should be monitored alongside evolving state-level retirement requirements.

The U.S. already enacted a significant retirement savings expansion through SECURE 2.0, which introduced the Saver’s Match program. This program is designed to replace the traditional Saver’s Credit with a direct federal contribution to retirement accounts. Under current law eligible workers earning roughly under $35,000 (with phaseouts at higher income levels) may receive a federal match up to $1,000 per year.

The program is scheduled to begin in 2027 however, the Saver’s Match has an important structural requirement: workers must already have access to and participate in a qualifying retirement account (such as an IRA or workplace plan) to receive the benefit. The proposed executive order is intended to bridge the access gap by establishing a centralized platform to help workers enroll in private retirement savings options and increase awareness of the Saver’s Match.

Why This Matters for PEO Clients

While this initiative is directed at individuals without employer-sponsored plans, it has practical implications for businesses operating within a PEO model:

• Reinforces the value of PEO-sponsored retirement plans - One of the core advantages of partnering with a PEO is access to structured, employer-sponsored benefits—including retirement plans with payroll integration, potential employer contributions, and administrative support. These features consistently drive higher participation and better outcomes compared to standalone individual accounts.

• Increased employee awareness - As federal attention on retirement access grows, employees may become more proactive in evaluating their benefits. This can lead to increased questions about available retirement options and overall benefits competitiveness.

• Competitive positioning for talent - Employers leveraging PEO-sponsored benefit programs are generally better positioned to attract and retain talent, particularly as retirement readiness becomes a more visible component of total rewards.

It’s important to note that access alone does not guarantee participation. Employer-sponsored plans remain more effective due to:

• Automatic payroll deductions

• Simplified enrollment processes

• The potential for employer contributions

Additionally, affordability continues to be a barrier for many workers, even when incentives like matching contributions are available. This executive order represents a step toward expanding access to retirement savings, but it does not replace the advantages of employer-sponsored plans—particularly those offered through a PEO structure. For PEO clients, this development reinforces the value of maintaining a comprehensive benefits offering and staying proactive in supporting employees’ long-term financial well-being.