During his State of the Union Address Tuesday night, President Obama announced a new proposal to make saving for retirement easier.

The savings plan, called MyRA is a savings bond that "guarantees a decent return with no risk of losing what you put in," according to the President.

This plan -- created by President Obama using his executive powers -- is designed to help Americans of all income levels save for retirement.

"Today, most workers don't have a pension. a Social Security check often isn't' enough on its own. While the stock market has doubled over the last five years, that doesn't help folks who don't have 401k's," he said during the speech.

People invest in the account through their employers, with a minimum initial investment of $25. From that point, people can contribute as little as $5 through payroll deduction.

This principal is guaranteed by the U.S. government, and will never go down in value. The account will earn interest at the same rate as federal employees' Thrift Savings Plan Government Securities Investment Fund.

The contributions to the fund are not tax deductible, but the earnings will not be taxed when they are withdrawn, and savers can withdraw the money at any time. Participants in the program can save up to $15,000 per year for up to 30 years before it turns into a private sector Roth IRA.

MyRA is available households that make up to $191,000 per year, and will be offered through a pilot program for employers who choose to sign up by the end of 2014.

Will It Work?

Though the MyRA plan is intended to target middle and low income households, Macomb financial advisor Tom Hakim isn't sure if it will solve the most important issues many people face.

"You know one of the historic problems has been, even with the 401k, is to get the lowest paid employees to participate because they need their money to pay their bills, every 5, 10, 20 dollars helps," said Hakim.

Hakim says that if MyRA helps people save, that's great, but he offers different advice.

"I would be inclined to think that most advisors in America would suggest somebody put moony in a bank or credit union."