A recent report from Morningstar revealed that the New Saver’s Match, set to begin in 2027, could have a huge impact on retirement savings, especially for single women, Black and Hispanic Workers Can Increase Retirement Wealth. This new program is designed to help low- and middle-income earners by offering a 50% matching contribution from the federal government on their retirement savings contributions, up to $2,000 each year.
What Is the New Saver’s Match?
The New Saver’s Match, part of the SECURE 2.0 Act of 2022, is designed to help eligible workers grow their retirement savings. In simple terms, for every dollar someone saves, the government will contribute an additional 50 cents, up to $1,000 per year.
Eligibility
Here’s a quick overview of the eligibility and income thresholds:
| Filing Status | Full Match Income Threshold | Phase-Out Income Threshold | Maximum Match |
| Single Filers | $20,500 or less | $35,500 | $1,000 |
| Joint Filers | $41,000 or less | $71,000 | $1,000 |
This matching program could help many eligible Workers Can Increase Retirement Wealth by up to 12%. It’s a key benefit for those with lower or middle-income jobs.
As we approach 2027, workers need to understand the potential impact of this program. If you’re looking to learn more about how these changes could affect Social Security benefits, you might want to check out Public Workers Wait Decades for Social Security Boost and They’re Still Waiting to explore how the program is affecting public sector workers.
Who Will Benefit Most from the New Saver’s Match?
Morningstar’s research indicates that single women, Black Americans, and Hispanic Americans are more likely to benefit from the Saver’s Match compared to other groups. This is primarily due to existing disparities in earnings and retirement savings. For instance, 43.2% of single women in Generation Z and Millennial households are eligible for the Saver’s Match, compared to 35.3% of men and 29.9% of couples.
Additionally, workers in industries like agriculture, mining, and construction — fields that often see lower retirement savings — are expected to see a greater boost to their retirement wealth through this program.
How Will the Saver’s Match Be Implemented?
While the program’s potential is clear, its success will depend on how well it’s rolled out. Retirement plan sponsors will need to ensure they educate their workers about how to take full advantage of the match.
Plan sponsors should be proactive in providing guidance on setting up individual retirement accounts (IRAs) for workers who may not have access to a defined contribution (DC) plan. As the program is integrated into existing retirement plans
As workers begin to understand the importance of this new benefit, they may find they can grow their retirement wealth more significantly than before. For additional insights into how social security and retirement savings are linked, consider reading More Social Security Benefits for Workers in 2025: What You Need to Know.
FAQs
1. What is the Saver’s Match program?
The Saver’s Match is a federal program that matches up to 50% of retirement savings contributions for eligible workers, up to $1,000 each year, beginning in 2027.
2. How do I qualify for the Saver’s Match?
To qualify for the full match, single filers must have a modified gross income of $20,500 or less, and joint filers must earn $41,000 or less. The match phases out as income increases.
3. How does the Saver’s Plan help workers can increase retirement wealth??
Workers in industries with low retirement savings, such as agriculture, mining, and construction, are expected to see a more significant increase in their retirement wealth due to the Saver’s Match.