President Donald Trump said his administration is examining Australia’s mandatory retirement savings model as officials develop a plan aimed at helping American workers build stronger retirement accounts.
By yourNEWS Media Newsroom
President Donald Trump said Monday that his administration is taking a close look at Australia’s retirement savings system as officials work on a proposal intended to strengthen long-term savings for American workers.
The idea, according to Fox Business, would build on Trump’s broader retirement and investment agenda, including the new Trump Accounts program for children. Trump said the Australian model has shown strong results and could be adapted for the United States with changes designed to improve it.
“I made reference today that Australia has a thing going that’s very good – it’s really worked out very well,” Trump said during a Rose Garden lunch Monday while promoting the children’s investment accounts. “We’re looking at that very strongly. We’re going to be taking that, and we’re going to be maybe making it a little bit sharper, a little bit even better. But we’re going to be doing that.”
Trump also discussed the proposal in remarks highlighted by Fox Business, saying the administration is looking at a retirement plan for adults that would be separate from the accounts designed for children.
Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and other administration officials are already studying the plan, according to Trump. The president described it as a companion effort to the children’s investment accounts included in his sweeping tax-and-spending law.
“That would be more for grown-ups, as opposed to children,” Trump said earlier Monday in the Oval Office. He said the administration would discuss the proposal with Congress and “try very hard” to get it approved.
Australia’s retirement system is based on “superannuation,” a mandatory savings structure that requires employers to contribute 12% of a worker’s ordinary earnings into tax-favored retirement accounts. Those accounts are largely managed by private funds, according to the Center for Retirement Research at Boston College.
Trump first raised interest in the Australian-style approach in December while announcing a $6.25 billion donation from Michael and Susan Dell for Trump Accounts. At the time, Trump said the administration was also examining a retirement savings plan aimed at “working people.”
The renewed focus on retirement savings comes as lawmakers continue to face pressure over Social Security’s long-term finances. The Center for Retirement Research has said Australia’s system is highly rated internationally, but has also argued that the United States would need to strengthen Social Security and broaden access to workplace retirement plans to substantially improve retirement security.
Trump Accounts, the children’s savings initiative discussed by Cheryl Casone in a separate Fox Business segment, are designed to provide eligible children with a $1,000 government deposit and allow up to $5,000 in annual contributions.
Trump said the adult retirement proposal could help workers reach retirement in stronger financial condition if the administration can move it through Congress.
“It’s something that’s going to be great, I think, if we can get it done,” Trump said in the Oval Office.
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