Trump Considers Australian-modeled Retirement Plan

President Donald Trump said on Tuesday that his administration is studying a new retirement savings program in the U.S. that’s modeled on Australia’s “superannuation” system.

When asked at the White House about policies aimed at boosting the U.S. birthrate, Trump said officials are reviewing “a certain Australian plan that people are liking,” Newsweek reported.

Australia’s retirement system centers on “superannuation,” which requires employers to contribute to private, tax-advantaged funds that grow until workers retire. Workers can add voluntary contributions and accounts increase over time through investment returns.

The administration’s interest in similar policies comes as Social Security and Medicare face mounting financial strains. Federal trustees warn that Social Security’s main trust fund will be unable to pay full benefits after 2033.

The proposed plan comes at a time when American retirees are facing shortfalls. Even though millions of older Americans will get a 2.8% boost in their Social Security checks starting in January, experts say the cost-of-living adjustment won’t keep pace with rising expenses such as food, housing and health care.

Trump described the retirement plan as a program for “working adults,” and said it is separate from new child investment accounts included in his tax and spending package.

Trump made the remarks at an event where Michael and Susan Dell pledged $6.25 billion to support Trump Accounts, which aim to provide investment accounts for 25 million children.

As a result, the U.S. Department of the Treasury will deposit $1,000 into accounts for children born from Jan. 1, 2025, through Dec. 31, 2028. The Dells’ donation will give $250 to eligible children 10 and under in lower-income ZIP codes who won’t receive the Treasury’s $1,000 contribution.