US President Donald Trump recently signed an executive order to expand retirement savings opportunities for tens of millions of workers without workplace retirement funds. Under the order, the Treasury Department will develop an online platform to help them find, compare, and open low-cost individual retirement accounts (IRAs) offered by private entities.

Central to this program is the "Saver’s Match", a mechanism where the federal government provides up to $1,000 annually to low and middle-income individuals who meet specified savings requirements.

According to the White House, a 25-year-old worker saving about $165 per month and receiving the full matching contribution could accumulate $465,000 by age 65, assuming a 6% annual investment return.

Trump encouraged young people to save regularly to build this amount. "In other words, they will become rich", he stated.

US President Donald Trump at the Raymond F. Kravis Center for the Performing Arts in West Palm Beach, Florida, on May 1. *Photo: AP*

However, some financial experts expressed skepticism, even refuting the idea that $465,000 is enough to be considered rich in retirement, especially when this amount must cover expenses for two to three decades.

"These retirement accounts have many benefits, but I do not believe they will make people rich", said Barry Glassman, a financial planner and founder of Glassman Wealth Services.

According to Glassman, $465,000 may be a substantial sum for retirement, but with 3% inflation, its current equivalent value would be under $200,000 after 30 years. "This is not a small amount, but it certainly cannot be considered rich", he analyzed.

Winnie Sun, co-founder and CEO of Sun Group Wealth Partners in Irvine, California, acknowledged that $465,000 is a large sum for many low-income families. Yet, in retirement, this figure resembles a "modest income" rather than an asset sufficient to allow someone to say, "I am rich".

For instance, consider the "4% rule", which is the amount a household can safely withdraw annually from retirement savings throughout their remaining life. Under this rule, they could withdraw about $18,600 in their first year of retirement, increasing with inflation. In other words, $465,000 is equivalent to an income of approximately $19,000 per year.

Moreover, this amount is considerably lower than what most Americans consider "rich". A Charles Schwab survey indicates that, on average, Americans believe they need about $2.3 million to be considered rich. Survey participants also reported needing $839,000 to feel "financially comfortable".

Nonetheless, experts agree that $465,000 provides a good foundation for low-income individuals by age 65. Retirement research in the US often assesses savings through an "income replacement ratio". This measures how much of a retiree's working income can be replaced by personal savings and other social security sources.

Therefore, if Trump's executive order helps a worker maintain a pre-retirement standard of living, that person might be considered "rich" relative to others in similar circumstances, rather than the entire society.

"If the goal is to maintain a pre-retirement lifestyle, this is a major step forward in helping low-income workers achieve it", commented Michael Finke, a financial planning expert at The American College of Financial Services.

Furthermore, in the context of Trump's executive order, the concept of "rich" might not refer to a specific sum but to the formation of a savings habit. "Sometimes 'wealth' is not about abundance. I think the program aims not to create millionaires, but to inspire the motivation to start saving", Winnie Sun noted.

According to the White House, approximately 41-56 million Americans lack workplace retirement funds. Spokesperson Kush Desai stated that these are primarily low-income groups who currently save almost nothing for old age. He believes that $465,000 "can make a very big difference" for these workers.

Phien An (according to CNBC)