Administration highlights long-term growth projections while economists note assumptions and market risks.
The White House is promoting “Trump Accounts” as a way to boost long-term household wealth, saying a typical account could grow to more than $1 million over 28 years based on projections from the Council of Economic Advisers.
The White House said that “Trump Accounts” are intended to provide what it described as a jumpstart to the American Dream, citing projections from the Council of Economic Advisers that estimate an account could grow to more than $1 million over a 28-year period.
According to the administration, the projection assumes long-term compound growth and consistent contributions over time. Officials emphasized that the estimate reflects modeled outcomes rather than guaranteed returns.
The Council of Economic Advisers, which provides economic analysis to the president, said such projections are based on historical market performance and specific assumptions about investment growth. The White House did not release detailed parameters underlying the estimate.
Economists note that long-term projections depend heavily on variables such as market conditions, inflation, contribution levels, and fees. They caution that actual outcomes could differ significantly from estimates, especially over multi-decade horizons.
Supporters of the proposal argue that incentivized savings or investment accounts can encourage wealth building and financial literacy. Critics, however, say headline figures can oversimplify complex financial realities and may not reflect risks faced by individual households.
The administration has not yet detailed whether Trump Accounts would require legislative approval, how they would be structured, or who would be eligible. Officials said additional information may be released as the proposal develops.
