President Donald Trump is exploring a retirement savings proposal modeled after Australia’s system, aiming to create a new path for American workers to build long-term financial security.
The idea would expand the administration’s focus beyond children’s investment accounts and examine a separate program designed for adults. The proposal is based on Australia’s superannuation system, where employers make mandatory contributions into retirement accounts.
Trump Administration Examines Australian Retirement Approach
According to Fox Business, Trump is considering an Australian-style retirement savings plan as part of broader efforts to reshape retirement policy in the United States.
During a Rose Garden lunch, Trump connected the idea to his newly launched Trump accounts program for children and suggested that a similar concept could later support working adults.
“I made reference today that Australia has a thing going that’s very good – it’s really worked out very well,” Trump said during a Rose Garden lunch Monday, touting his new “Trump accounts” program for children.
“We’re looking at that very strongly. We’re going to be taking that, and we’re going to be maybe making it a little bit sharper, a little bit even better. But we’re going to be doing that.”
The president said Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and other officials were involved in examining the proposal.
The administration has presented the retirement concept as a companion effort to the children’s investment accounts created through Trump’s broader tax and spending legislation.
The proposal remains under development, with further discussions expected with lawmakers in Congress before any potential implementation.
How Australia’s Superannuation System Works
Australia’s retirement structure relies on superannuation, a mandatory savings system requiring employers to contribute a percentage of workers’ earnings into retirement accounts.
According to the Center For Retirement Research At Boston College, Australian employers contribute 12% of ordinary earnings into tax-favored retirement accounts that are generally managed by private funds.
Supporters of the model point to its ability to encourage consistent retirement savings throughout a worker’s career.
The system has become one of the international examples often discussed in retirement policy debates because it creates automatic contributions instead of relying only on voluntary workplace participation.
Trump has previously expressed interest in adapting parts of the Australian approach for American workers.
The administration has not released a complete framework explaining how a U.S. version would operate, including contribution levels, investment rules, or how it would interact with existing retirement programs.
Step 1: Trump accounts for the next generation
— Save Match Grow (@savematchgrow) July 7, 2026
Step 2: Trump IRA for workers (similar to Australia's savings plans for workers)
The result? Long-term wealth for all Americans @POTUS @SecScottBessent @tedcruz pic.twitter.com/lz8Vx4iTPc
Retirement Security Debate Expands In The United States
The discussion arrives as policymakers continue debating the future of Social Security and the challenges surrounding long-term retirement funding.
Trump said the proposed adult savings initiative would be different from the children-focused accounts already introduced by his administration.
“That would be more for grown-ups, as opposed to children,” Trump said earlier Monday in the Oval Office, adding that the administration would discuss the idea with Congress and “try very hard” to get it done.
Researchers have noted that adopting elements of Australia’s system alone would not resolve every retirement challenge facing Americans.
The Center For Retirement Research has argued that the United States would still need to address Social Security finances while improving access to workplace retirement plans.
The potential proposal reflects a wider policy debate over whether automatic savings systems could help more workers prepare for retirement.
A Potential New Direction For American Retirement Accounts
Trump described the possible retirement savings plan as a major opportunity if lawmakers and the administration can reach an agreement.
The president emphasized that the goal would be creating a stronger financial foundation for workers as they approach retirement age.
“It’s something that’s going to be great, I think, if we can get it done,” Trump said in the Oval Office.
The proposal could become part of a larger discussion about how governments encourage personal savings and investment.
For now, the administration is still evaluating the Australian model and considering how it could be adapted to the U.S. economy.
The next steps will depend on discussions with Congress and the development of specific policy details.
