There’s no doubt that President Trump has been intrigued by the Australian-style retirement program. This sobering discovery was made at a plenary session at a superannuation summit convened in Washington, D.C., earlier this year. Trump’s administration is exploring how Australia’s compulsory superannuation system, designed to support retirees, could be adapted to address similar concerns in America.
Australia’s superannuation program—colloquially called “super”—has accumulated a staggering 4.5 trillion Aus dollars in assets. This accomplishment makes it the fourth-largest retirement savings fund in the world. Administration of this tyrokin fund has taken one Australian superannuation investment fund in one global market.
The Foundation of Australia’s Superannuation Program
The superannuation system was introduced in 1992 to combat issues related to an aging population and to ensure that citizens can support themselves during retirement. Its most defining feature is the employer pay-or-play mandate, which is set at 12% of an employee’s total pay. This contribution rate has steadily risen from a starting 3% as the program developed through the decades.
Further, the structure of Australia’s superannuation system requires all workers to participate, with no ability for workers to opt-out. Funds in these super accounts are strictly protected until people reach retirement age. Until then, access to these funds is practically non-existent.
“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
Significance and Impact of Superannuation
Australia’s superannuation system has been a successful model for developing robust retirement savings among its working citizens. This program’s construction imprint’s near-universal coverage. It improves savings by default enabling Australians to accumulate some of the largest retirement savings in the world.
The country’s superannuation system garnered a B+ rating on the Mercer CFA Institute Global Pension Index for 2025, reflecting its robust framework and positive outcomes for retirees.
Matthew Linden, an expert on retirement systems, highlighted the advantages of Australia’s approach:
“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.”
Potential Adoption in the U.S.
Debates over the future of retirement are getting more intense across the United States. At the same time, Trump’s administration is reportedly scrutinizing the Australian model as a potential fix. Together we can work to build a stronger retirement system. This new system will go a long way to alleviating financial stability worries for older Americans.
“We’re looking at it very seriously,” – President Donald Trump
Trump further emphasized his positive view of the Australian program, stating:
“It’s a good plan. It’s worked out very well.”
With a population of approximately 27 million people, Australia has demonstrated how a well-structured compulsory retirement savings program can significantly impact future generations.