Answering a question on how his administration would lift the US birthrate, he said it was \u201clooking at programs. There\u2019s a certain Australian plan that people are liking, and they\u2019re talking about \u2026 not for children, necessarily, but it\u2019s for people, working people.\u201d<\/p>\n
Loading<\/p>\n
He later clarified that this was our superannuation system.<\/p>\n
Trump has clearly picked up on the positive remarks of others such as BlackRock founder Larry Fink, somewhat like a godfather of investment firms and a financial influencer in the US with $US13 trillion in assets under management, who praised the Australian super model that has contributed to the population having more retirement savings per capita than people in any other country in the world.<\/p>\n
In a letter to his shareholders<\/a>, Fink commented that our 30-year-plus system, which is unique in the world, is delivering unprecedented levels of savings for Australians approaching retirement and has played a key role in the development of a much more sophisticated domestic capital market.<\/p>\n Trump could be impressed by the disproportionate size of Australia\u2019s $4.3 trillion superannuation pool and even more impressed at how much pressure it takes off the government\u2019s need to finance retirement incomes. But the mechanics of implementing such a scheme in the US would be near impossible.<\/p>\n Loading<\/p>\n Enforcing contributions from workers and employers runs counter to the less prescriptive industrial relations laws in the US. Contribution to pensions (called 401k) during the lifetimes of US workers is currently voluntary, rather than compulsory as it is here in Australia.<\/p>\n Clearly Trump wasn\u2019t across the detail of Australia\u2019s superannuation model, but he may have gained a positive impression from US Treasury Secretary Scott Bessent, who attended a special superannuation summit<\/a> in February at the Australian embassy in Washington, where he said he was impressed by the reliable growth of Australia\u2019s pension funds.<\/p>\n And Trump wanting to mimic a model viewed by many as the gold standard is unsurprising.<\/p>\n Standing next to Michael and Susan Dell as they announced their generous contribution to the children of America is equally unsurprising. The halo effect of that would appeal to the president.<\/p>\n Money in Trump Accounts must be invested in an index fund, which tracks the overall stock market, his administration\u2019s policy states.<\/p>\n \u201cTrump Accounts will be the first \u2013 I guess you could say \u2013 first real trust funds for every American child, allowing family members, employers, corporations, generous donors to contribute money that will be invested and grow,\u201d Trump said in a White House press conference on Tuesday, after the announcement of the Dells\u2019 pledge.<\/p>\n He continued: \u201cAn investment\u2019s gonna be made, that investment\u2019s gonna continue to grow \u2013 we hope, right, we hope. But it will.\u201d<\/p>\n Maybe that\u2019s what his scheme has in common with Australia\u2019s superannuation \u2013 they are both tax-effective investments that are inaccessible until a prescribed time. Australians can get their super on retirement, while Trump Accounts can be accessed when children turn 18.<\/p>\n Whether either has the effect of promoting population growth is anyone\u2019s guess.<\/p>\n