“Working well”: Trump eyes Aussie-style retirement plan for America

What Trump is proposing

Donald J. Trump said his administration is “very seriously” considering adopting a version of Australian superannuation system — a mandatory retirement-savings scheme — in the United States.

Asked about policies aimed at boosting the U.S. birth rate, Trump pointed to Australia’s system as a model “working people” could rely on.

What is Australia’s superannuation system

In Australia, employers are required by law to contribute a set percentage of each worker’s salary into privately-managed retirement funds. Over decades, this system has built up trillions of dollars in retirement savings, reducing reliance on direct government pensions.

It’s seen as a long-term nest egg: savings are invested, often globally, and only accessible when individuals reach retirement age — giving workers a stable pension beyond the state’s age-pension scheme.

Why Trump says the U.S. could benefit

• The U.S. retirement-savings landscape is more fragmented — many Americans rely on voluntary 401(k)-style plans, which often depend on employers offering matching contributions. Critics say this leaves many without reliable retirement savings.
• By contrast, a mandatory system like Australia’s could provide a broad-based safety net for retirement, ensuring workers of all incomes accumulate savings automatically over their working lives.
• The Trump administration appears to link financial stability in retirement to broader societal goals: by improving long-term financial security, it hopes to reduce barriers to starting families.

Questions and challenges: could it work in the US?

Adopting Australia’s model in the U.S. wouldn’t be straightforward. Experts note several structural differences:

• American retirement savings are patchy — many small- and medium-size employers don’t offer retirement plans, and participation in voluntary schemes can be low.
• The compulsory contributions could reduce take-home pay, a potential political and economic problem in a labor market and economy very different from Australia’s.
• The notion that a retirement savings program would encourage higher birth rates is speculative. Demographers argue that many other factors — housing affordability, childcare costs, social support systems — play far larger roles in family planning than long-term retirement security.

What’s next — an idea under review

For now, Trump’s remarks signal a shift: the U.S. administration is open to rethinking retirement savings architecture.

Policymakers, economists, and retirement experts are watching closely: if the idea moves forward, it could represent one of the most significant overhauls of America’s retirement system in decades.