The Trump administration is looking to the bottom for inspiration on how to reform the United States’ retirement savings system.
President Donald Trump said at the White House on Tuesday that his administration is looking at an Australian-style retirement program.
“We’re taking this very seriously,” Trump said. “It’s a good plan. It’s very well worked out.”
Australia’s primary retirement savings program – known as “superannuation” – may have caught the attention of Washington officials.
Superannuation, or “Super” for short, is Australia’s leading retirement savings program.
Employers are required to fund employees’ savings accounts, which are invested in select funds – known as super funds – that are locked in until retirement. Employer-funded contributions are made on top of paying employees their regular income. Employees can also contribute to their own savings account.
Employers must contribute an equivalent of 12% of employee earnings to these super funds — a gradual increase from 3% when the modern superannuation program was established in 1992.
“There is no opt out,” Tim Jenkins, a partner at consulting firm Mercer, told CNN. “If you’re employed, your employer must pay 12% of your salary into your retirement savings, and it’s locked in until you reach retirement age with some ways to access it along the way, but really very limited.”
Despite the country’s ranking as the 55th largest by population, Australian super funds are the fourth largest retirement savings pool in the world, according to JP Morgan Chase.
The total superannuation investment pool has about 4.5 trillion Australian dollars in assets (about $3 trillion).
Employees can choose from a variety of super funds. Funds are managed by professional investors such as government-regulated financial institutions and invest in a variety of global assets, from stocks to private equity.
The Australian Superannuation Program was introduced to address concerns about an aging population and how to support people in retirement.
“With an aging population and a declining birth rate, such a system takes the financial burden off future generations,” Jenkins said.
Australia’s superannuation system has been ranked B+ in the Mercer CFA Institute Global Pensions Index for 2025. Meanwhile, the United States is ranked C+.
There is also a government pension program that acts as a safety net for people who need extra support. However, “super” is increasingly the primary retirement savings vehicle.
In the United States, employer-sponsored retirement programs such as 401(k)s—which were first established in 1978—are optional. Employers who offer 401(k) plans can decide whether they will match employees’ contributions.
Social Security, which was established in 1935 under President Franklin Delano Roosevelt, serves as the primary vehicle for retirement income. American workers pay Social Security taxes, which are deposited into a fund distributed to current retirees. As the U.S. population ages, there is growing concern that Social Security funds are stretched thin.
In general, Australia’s mandatory employer-funded investment savings plan contrasts with the US system where voluntary 401(k)s are linked to a long-standing social security program.
It is unclear whether the United States will be able to implement a program similar to the retirement model, especially given the politics surrounding changing retirement plans. Australia also has a population of 27 million, while the United States has a population of about 343 million.
It is not the first time Trump has mentioned Australia’s superannuation system during his administration. Australian super funds are major investors in US assets, and Treasury Secretary Scott Besant spoke at a retirement summit in Washington, D.C., in February, where he touted the program’s success.
Matthew Lyndon, executive general manager of strategy and insights at the Council of Super Members, who attended the summit in February, said: “US officials and investors have been surprised by how Australia’s super system policy settings – automatic super payments, near universal coverage and protection of savings until retirement – have helped Australians grow their nest eggs.”
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