President Donald Trump stated that his administration is seriously studying Australia\u2019s 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\u2019s declining birthrate.<\/p>\n
\u201cWe\u2019re looking at it very seriously,\u201d Trump told<\/a> reporters at the White House, Newsweek reported. \u201cIt\u2019s a good plan. It\u2019s worked out very well.\u201d<\/p>\n The Australian system, known as superannuation or \u201csuper,\u201d requires employers to pay 12% of an employee\u2019s ordinary earnings into a private investment fund in addition to regular wages. <\/p>\n 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.<\/p>\n \u201cThere is no opt out,\u201d said<\/a> Tim Jenkins, a partner at consulting firm Mercer, CNN reported. \u201cIf you are employed, your employer must pay 12% of your pay to your retirement savings, and it\u2019s locked up until you\u2019re approaching retirement age, with a few ways to access on the way, but very limited indeed.\u201d<\/p>\n As of mid-2025, Australia\u2019s superannuation assets topped<\/a> AU$4.3 trillion (about $2.83 trillion), making it one of the world\u2019s largest pension pools despite the country\u2019s relatively small population.<\/p>\n 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.<\/p>\n The program has helped elevate<\/a> Australia to a B+ rating on the 2025 Mercer CFA Institute Global Pension Index, while the United States ranks C+.<\/p>\n In contrast, America relies heavily on Social Security \u2014 a pay-as-you-go program facing depletion<\/a> of its main trust fund by 2033 or 2034 without congressional action \u2014 and on voluntary 401(k) plans that many workers, especially in lower-wage jobs, lack.<\/p>\n Trump\u2019s interest comes as more than 70 million Americans depend<\/a> on Social Security, and policymakers grapple with an aging population and low national savings rates.<\/p>\n