Even former President Donald Trump looked to implement an Australian-style retirement program in the United States. This bipartisan effort is part of a larger movement to improve Americans’ retirement savings—just like the superannuation system that works well in Australia. As recently as a few weeks ago, Trump told CNBC “We’re looking at it very seriously,” signaling that he is indeed committed to reforming the nation’s retirement savings crisis.
Australia’s superannuation program started in 1992. This plan was meant to address issues posed by an increasing elderly population and make sure people had enough money to live on after they retired. It requires employers to deposit 12% of an employees’ income directly into their superannuation funds, thus establishing a pillar of the savings infrastructure. The program serves as a compulsory employer-funded investment savings plan, ensuring that contributions are preserved until employees near retirement age.
Overview of Australia’s Superannuation Program
Australia’s superannuation system has been attracting international accolades. It just received the highest possible B+ sustainability rating on the Mercer CFA Institute Global Pension Index for 2025. The endowment investment pool totals some 4.5 trillion Australian dollars, or 3 trillion US dollars. This remarkable number puts it at the fourth-highest retirement savings pool on Earth. The program is the main pillar of support for Australia’s 27 million citizens. It provides essential support to workers, helping them plan to enter retirement.
The superannuation program effectively quarantines contributions until employees reach retirement age. This framework severely restricts access to dollars prior to that year. Most notably, there is no opt-out option for employees. Participation is required for any employees that are hired. This policy has long been credited with fostering financial security among retirees.
“What has struck US officials and investors is how the strength of Australia’s super system policy settings — automatic super payments, near universal coverage and preservation of savings until retirement — have helped Australians grow world-leading retirement nest eggs.” – Matthew Linden
US Interest in Superannuation
Australia’s superannuation program has flown under the radar in Washington, D.C., but it’s getting hard to ignore. In February, US Treasury Secretary Scott Bessent spoke to a superannuation summit to promote its attractiveness. In his opening remarks at this event, he touted the program’s many successes. He pointed to its promise as a testbed for reshaping American retirement savings systems.
Mathew Linden, executive general manager of strategy and insights at the Super Members Council, shared an inspiring declaration at the summit. He pointed out the many advantages of Australia’s system. He noted how the structured contributions have fostered significant growth in retirement savings, highlighting the program’s effectiveness in securing better financial futures for Australians.
“If you are employed, your employer must pay 12% of your pay to your retirement savings, and it’s locked up until you’re approaching retirement age with a few ways to access on the way, but very limited indeed.” – Tim Jenkins
Implications for American Workers
In fact, serious discussions are ongoing about implementing an Australian-style system in the U.S. Many retirement experts feel this rule is a significant step toward improving American workers’ preparedness for retirement. This new system requires employers to contribute to employee retirements in order to increase retirement savings. It locks in those funds until old age, preventing millions of Americans from falling victim to the lacking savings hurdles.
Trump noted the potential benefits of such a program, stating, “It’s a good plan. It’s worked out very well.” His administration’s interest in exploring this model isn’t just a great step towards improving retirement savings strategies in the U.S. It’s a huge leap forward.