Retirement Savings for Americans Act of 2025

Key Points

• This bill creates a brand-new national retirement savings program called the American Worker Retirement Plan. It's designed for workers who don't currently have access to a retirement plan through their employer — including freelancers, independent contractors, and part-time employees at small businesses.
• Eligible workers would be automatically enrolled to save 3% of their pay, but they can change the amount or opt out entirely. Employers that fail to enroll qualifying workers face penalties. The plan is portable, meaning your account stays with you regardless of job changes.
• The government would provide a generous matching contribution through a new tax credit. Workers would receive 1% of their income automatically, plus a 100% match on the first 3% they contribute and a 50% match on the next 2%. This match is deposited directly into the worker's retirement account.
• The match phases out for higher earners. The credit limit is 5% of the phaseout amount (tied to 200% of national median income for joint filers), and it decreases by $75 for each $1,000 of income above that threshold. This targets the benefit to low- and middle-income workers.
• Savings would be invested in low-cost options similar to the federal Thrift Savings Plan, including government bonds, stock index funds, and target-date lifecycle funds. Contributions are treated like Roth accounts — taxed going in but tax-free coming out in retirement.
• Account balances do not count against eligibility for federal public assistance programs for people under 65, protecting low-income savers from losing benefits like SNAP or Medicaid while they build retirement wealth.