Have you ever wondered what will be the next step taken by Donald Trump? Can you imagine what decisions he will make in 2028? According to economists and academics, 2028 will be a year where the 401(k) plans may begin to take hold in society.
Thinking about the future
Since the beginning of his term in January 2025, it has been practically impossible to predict what the US president’s next move would be.
After implementing various measures, the latest has been one of the most controversial worldwide: the new tariffs imposed on more than 60 countries. It seems that this measure has inherited the unpredictable character of the Republican president, since it is practically impossible to be updated with all back and forth it has played.
Only being helped by economists and academics could we shed some light on what awaits us in 2028.
What is a 401(k) plan?
Have you ever stopped to think about your future? Have you thought about those days when the alarm will no longer sound at 7 am? How would you like to spend your retirement? In a house by the sea enjoying the sun and the beach? Traveling around the world? on an endless journey aboard a cruise ship?
Any of these options sounds incredibly appealing, right? For better or worse, they all have a common denominator. Money.
That is why all countries recommend their citizens to invest in their future, whether through investments in personal retirement funds, financial or personal pension funds.
Of course, the US was not going to be any less. In the American case, the 401(k) plan has been working for years, although without much success so far.
According to the US Internal Revenue Code, a 401(k) plan is an employer-sponsored personal retirement savings fund. Invest in order to increase these funds, and be able to be used in case of economic need.
Currently, it is one of the most matter pending features of the Republican Administration, since despite being advertised as an attraction for Americans, the reality is that the percentage who performs it is minimal.
According to experts, by 2028 these funds will have reached their peak of popularity, being used by roughly 50% of the private sector employees of companies in the country.
What else should you know about the 401(K) plan?
Do they work?
The latest data released by the US Federal Reserve is for 2010. These data reflect that, back then, only 40% of the private sector workers have benefited from this type of retirement investment plan.
It has taken 15 years for this measure to gain some strength and be accepted by the citizens of America.
Over the years, only 10% have joined this initiative, thus reaching 50% of workers in private companies in the US.
Who has helped to make this possible?
The Federal Government has been responsible for promoting this measure. Over the past 50 years, their job has been to convince Americans that this was the best way to save for their future (specifically their retirement) and to contribute to social security payments.
How did they do it? Well, they have relied on different tax brakes to finish convincing the American citizen
Will 401(k) plans be successful?
Having reached 50% of the working population in the American private sector, we could conclude that it has taken only 13 years to reach this percentage.
Perhaps, if President Trump took into account these data cast by professionals in the economic sector, he would give a couple of turns to his approach. Or not. We all know that giving orders to a mandatary usually does not work out successfully, especially if we are referring to the current president of the United States.
