Saver’s Match: Opportunity to Help Close Retirement Savings Access Gap

When looking for wider access to retirement savings, as well as more equitable benefits, the Saver’s Match will offer an opportunity to amass meaningful amounts of money in the retirement accounts of workers with low incomes, according to experts who spoke at the seventh annual Aspen Leadership Forum on Retirement Savings, held May 31-June 2 and summarized in a recent report released by the Aspen Institute Financial Security Program.  

The SECURE 2.0 Act of 2022 revised what was formally known as the Saver’s Credit, which allowed qualified individuals—namely low- and mid-income workers—participating in a retirement plan or contributing to an IRA to receive a nonrefundable tax credit of up to 50% of their contribution, up to a maximum contribution of $2,000 (or $4,000 if married filing jointly). 

The Saver’s Match will replace the Saver’s Credit, changing from a credit paid as part of a tax refund into a federal matching contribution that must be deposited into a taxpayer’s IRA or retirement plan. The match program is equal to 50% of IRA or retirement plan contributions, up to $2,000 per individual. 

According to law firm Schneider Downs, qualified participants will be able to choose which retirement account to receive the contribution, excluding Roth accounts. If a participant’s annual contributions are less than $100, the matching contribution will be applied to lower their tax liability, or, if elected, a participant can have their matching contribution applied to pay their tax return, similar to how the Saver’s Credit functions. 

The match deposited into an individual’s account does not count toward an annual contribution limit. The goal is to make it easier for people to save for retirement by actually putting more money into retirement accounts. 

This match is set to become effective for taxable years after December 31, 2026, according to the provision. 

Retirement experts at the Aspen Leadership Forum said there is concern that without “thoughtful and strategic preparation,” the program may not reach its full potential.  

“We need to do the necessary background work to ensure that the Saver’s Match succeeds—and we need to begin that work now,” the brief from the Aspen Institute stated. “Specifically, we must identify potential operational challenges and programmatic bottlenecks and preemptively establish the necessary workarounds and solutions. At the same time, we must build a broad and powerful cross-sector base of support to help this program be most effective for the workers it is meant to serve when this match becomes available in 2027.” 

Joshua Luskin, the managing director of Secure Retirement Trust, a nonprofit retirement plan for home care workers in Seattle, says the Saver’s Credit is beneficial for low-income participants, but very few currently take advantage of it. He says more education about this benefit would make it more effective and, as a whole, more legislation is needed to help low-income workers. 

SECURE 2.0 requires that the U.S. Department of the Treasury increase public awareness of the matching contribution program. This will include: 

• Developing and distributing digital and print materials about the Saver’s Match, including materials for state-facilitated retirement savings programs;  
• Translating these materials into the 10 most commonly spoken languages in the U.S.; and 

• Making people aware of the potential penalties for withdrawing matching contributions early. 

The Treasury must submit a report to Congress by July 1, 2026, summarizing its planned promotional efforts.  

Speakers at the Aspen Institute forum also argued that the retirement industry, as a whole, needs more diverse voices and should partner with peers in related areas of household finance, including those focused on expanding economic opportunity, access to housing and credit, debt relief and more, in order to help close the retirement savings access gap. 

“Given the interconnected nature of these issues and the burgeoning sense that national policy will be required to eradicate the retirement savings access gap, there is an urgent need to bring new voices, expertise, and perspectives to the inclusive retirement savings community in order to both learn from one another and share networks, resources and ideas, and also to build a broader, more diverse coalition that better represents the larger ecosystem of household wellbeing, of which retirement is a critical piece,” the Institute’s summary stated. 

The Aspen Leadership Forum welcomed retirement experts from the public, private and nonprofit sectors, including corporate leaders, policymakers, researchers and advocates convened at the Sagamore Pendry Baltimore hotel. Conducted under the Chatham House Rule, which prevents speakers from being identified by name or by affiliation, the Aspen Institute’s summary was written by Loren Berlin who served as forum rapporteur.