Trump administration considers adopting Australian-style retirement system

The White House announced that senior officials are drafting a retirement-savings proposal for U.S. workers based on Australia’s mandatory superannuation system, which requires employers to contribute a set percentage of wages to tax-advantaged accounts. President Donald Trump said the plan could improve Americans’ retirement readiness and described it as a companion to the children’s investment accounts created under recent tax legislation. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and other administrators are preparing the details and intend to present the idea to Congress. The Australian model, which mandates a 12% employer contribution managed largely by private funds, has been praised internationally, though analysts note that the United States would still need to address Social Security funding and expand workplace retirement coverage to achieve comparable outcomes. Trump indicated the administration will work “very hard” to advance the proposal.