Obama is calling them the “MyRA” and said he would, by executive order, direct the Treasury Department to create them.
Details were scarce Tuesday night, but employees will be able to contribute part of their wages to the savings accounts, which would be backed by the U.S. government.
“It’s a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in,” Obama said during the State of the Union.
About half of all American workers are employed by companies that don’t offer retirement plans, according to a 2009 Brookings Institution report.