Retirement Savings for Americans Act of 2025

Key Points

• This bill creates a brand-new national retirement savings program called the American Worker Retirement Fund, housed in the U.S. Treasury, for workers who don't currently have access to a retirement plan through their employer.
• Workers would be automatically enrolled to save 3% of their pay, but they can change that amount or opt out entirely at any time. Employers who fail to enroll eligible workers face financial penalties.
• The government would match worker contributions through a new tax credit. It matches 100% of the first 3% of income saved, 50% of the next 2%, plus an automatic 1% of gross income, with the total credit capped based on income level.
• The program is designed specifically for workers at businesses that don't offer retirement plans and for self-employed independent contractors without their own plans. Workers at companies with existing 401(k)s or similar plans are not eligible.
• Savings are treated like Roth contributions (taxed now, withdrawn tax-free in retirement) and invested in low-cost funds similar to the federal Thrift Savings Plan. A new independent board of five members would oversee fund management.
• Account balances are fully portable, belong entirely to the worker, and cannot be taken away. Importantly, the money in these accounts will not count against eligibility for federal public assistance programs for people under 65.