President Donald Trump stated that his administration is seriously studying Australia’s compulsory retirement savings program as a potential model for the United States. This initiative is part of a broader effort to enhance retirement security and address the nation’s declining birthrate.

“We’re looking at it very seriously,” Trump told reporters at the White House, Newsweek reported. “It’s a good plan. It’s worked out very well.”

The Australian system, known as superannuation or “super,” requires employers to pay 12% of an employee’s ordinary earnings into a private investment fund in addition to regular wages.

Introduced in 1992, the program has no opt-out for workers, and the money is generally locked until retirement age, with only limited early access.

“There is no opt out,” said Tim Jenkins, a partner at consulting firm Mercer, CNN reported. “If you are employed, your employer must pay 12% of your pay to your retirement savings, and it’s locked up until you’re approaching retirement age, with a few ways to access on the way, but very limited indeed.”

As of mid-2025, Australia’s superannuation assets topped AU$4.3 trillion (about $2.83 trillion), making it one of the world’s largest pension pools despite the country’s relatively small population.

Contributions and fund earnings are taxed at a concessional 15% rate, while withdrawals in retirement can be tax-free. Employees can choose their fund and make extra voluntary contributions within caps.

The program has helped elevate Australia to a B+ rating on the 2025 Mercer CFA Institute Global Pension Index, while the United States ranks C+.

In contrast, America relies heavily on Social Security — a pay-as-you-go program facing depletion of its main trust fund by 2033 or 2034 without congressional action — and on voluntary 401(k) plans that many workers, especially in lower-wage jobs, lack.

Trump’s interest comes as more than 70 million Americans depend on Social Security, and policymakers grapple with an aging population and low national savings rates.

Treasury Secretary Scott Bessent highlighted Australia’s success earlier this year at a Washington superannuation summit. Matthew Linden, an executive at Australia’s Super Members Council, said U.S. officials have been impressed by the system’s “automatic super payments, near universal coverage and preservation of savings until retirement,” CNN reported.

Critics of the Australian model note its complexity, the burden of mandatory contributions on small businesses, and the fact that individuals bear all investment risk in a defined-contribution structure.

Any U.S. version would require a major legislative overhaul and face political hurdles in a country more than 12 times the size of Australia.

Still, supporters argue a compulsory private savings system could ease future pressure on Social Security and give workers larger, individually controlled nest eggs.

The White House has offered no timeline or detailed proposal, but Trump described the Australian approach as “very unique” and stressed that strengthening retirement savings remains “very important” to his administration.