Trump Considering Australian-Style Retirement Plan

By Sam Stevenson

Associate News Editor

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President Donald Trump’s administration is "seriously" considering rolling out an Australian-style retirement plan for Americans in an attempt to boost the U.S. birthrate.

Trump said Tuesday that his administration was evaluating the implementation of an Australian-modeled retirement savings program as part of broader efforts to address demographic and economic headwinds facing the United States.

Why It Matters

The prospect of Trump modeling a new U.S. retirement system after Australia’s compulsory superannuation program has drawn national attention as the current American system faces pressing long-term challenges.

According to the latest annual report from the Social Security and Medicare Trustees, the trust funds face significant financing challenges, and without major reforms, Social Security’s Old-Age and Survivors Insurance program will only be able to pay full scheduled benefits until 2033.

More than 70 million Americans relied on Social Security benefits in September. Addressing the sustainability of retirement security has become a central policy challenge amid concerns over the U.S. birthrate and national savings levels.

What To Know

Australia’s so-called "superannuation" system, introduced in 1992, requires employers to contribute 12 percent of an employee’s ordinary time earnings into a super fund, with workers allowed to make additional voluntary contributions within set limits.

The funds remain invested until retirement age, creating what is widely regarded as a world-leading national retirement nest egg.

Among the strengths of the system are the fact that it captures nearly all employees with its universal coverage, and it creates a large asset pool, with more than AU$4.3 trillion ($2.83 trillion) in assets as of mid-2025, making it one of the largest pension systems globally.

There are also tax advantages because contributions and investment earnings are taxed at concessional rates (15 percent), and retirement-phase earnings can be tax-free.

On the other hand, the system involves complex legislative changes, contribution caps, and compliance requirements that can confuse members.

Funds are locked until retirement age, limiting financial flexibility for emergencies.

Their defined-contribution structure also means individuals bear market risk, meaning poor investment choices can lead to a reduced retirement income.

Trump made the remarks about Australia’s retirement system at a White House event at which billionaires Michael and Susan Dell pledged $6.25 billion to augment the Trump administration's newly established child investment accounts—known as "Trump Accounts," initiated under the One Big Beautiful Bill Act.

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The Dells' donation will allocate $250 to 25 million children under the age of 11, particularly those in families earning less than $150,000 annually.

The government will deposit $1,000 into a Trump Account for all American children born between January 1, 2025, and December 31, 2028.

The funds, invested in a broad stock market index, can be used after the child turns 18 for education, homeownership, or starting a business.

What People Are Saying

Asked about the Australian retirement plan model, Trump said: "There’s a certain Australian plan that people like. There’s a plan where, not for children necessarily, but for people, working people, and we are looking at other things different from this. I think this is very unique, but different from this, but very important…We’re looking at it very seriously. It’s a good plan. It’s worked out very well."

On the "Trump Accounts," he added: "Trump accounts will be the first—I guess you could say—first real trust funds for every American child, allowing family members, employers, corporations, generous donors to contribute money that will be invested and grow."

Susan Dell told The Associated Press: "We want these kids to know that not only do their families care, but their communities care, their government, their country cares about them."

Ray Boshara, senior policy adviser with the Aspen Institute and Washington University in St. Louis, told The Associated Press: "We would like to see this idea continue and get better over time, just like any big policy. The ACA, Social Security—they start off fairly flawed but get much better and more progressive and inclusive over time. And that’s how we think about Trump Accounts. It’s a down payment on a big idea that deserves to be improved and there’s bipartisan interest in improving them."

U.S. Treasury Secretary Scott Bessent said: "We are going to make sure that all American families have a stake in the success of the United States of America. People who have a stake in the system and become more and more invested in the system do not want to bring down the system, they want to make it better."

What Happens Next

Contributions to Trump Accounts are slated to begin on July 4, 2026. While the One Big Beautiful Bill has already established the accounts for children, Trump's exploration of an Australian-style superannuation plan for working adults remains under consideration, with further details expected from the administration.

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