President Donald Trump is saying that his administration is really looking into adopting an Australian-style retirement plan for American workers, which he describes as “a good plan” that has “worked out very well.” This announcement came alongside a big $6.25 billion donation from Michael and Susan Dell aimed at boosting his new children’s investment accounts, known as Trump Accounts.
During a White House event promoting this initiative, Trump talked about the Australian model. According to Newsweek, he mentioned that it’s a plan people seem to like and that it’s focused on “working people,” not just kids. He emphasized, “We’re looking at it very seriously,” pointing out its success.
This discussion arises at a time when the U.S. is facing ongoing demographic and economic challenges. The Social Security and Medicare Trustees have indicated that the trust funds are under pressure, warning that without significant changes, Social Security can only provide full benefits until 2033. Over 70 million Americans received Social Security benefits in September alone, showing how many depend on this program.
🚨President Trump just told me that he is looking into replicating a version of the Australian retirement savings accounts program in order to increase the U.S. birth rate.
“There’s a certain Australian plan that people like they’re talking about,” he told @DailySignal.
After… pic.twitter.com/4Amb5kxzl1
— Elizabeth Troutman Mitchell (@TheElizMitchell) December 2, 2025
Australia’s retirement system, known as superannuation, is mandatory, with employers contributing 12% of an employee’s earnings to their retirement fund. Workers can also make additional voluntary contributions within certain limits, and these funds remain invested until retirement age. This system has grown into a huge savings pool valued at over AU$4.3 trillion, making it one of the largest pension funds globally.
Supporters argue that the superannuation system works well because almost all workers are covered, contributions are regular, and the funds see solid long-term growth. Plus, there are tax perks like a lower 15% tax rate on contributions and investment earnings. However, it isn’t without flaws. The rules can be complex, contribution caps may confuse members, and accessing money early isn’t allowed, which limits financial flexibility. Since it’s based on defined contributions, workers also face market risks.
SBS Australia reported that when asked if he was talking about superannuation specifically, Trump confirmed with “That’s what they’re talking about, yep.” While the U.S. already has retirement options like 401(k)s, most contributions are voluntary and vary significantly across different sectors.
Trump ‘Seriously’ Considering Implementing Australian Retirement Programhttps://t.co/S2PbGRHJWD
— Elizabeth Troutman Mitchell (@TheElizMitchell) December 2, 2025
Trump made these comments while announcing the Dells’ groundbreaking donation to Trump Accounts as part of his One Big Beautiful Bill. Their gift will give $250 to 25 million children under 11 from families earning less than $150,000 a year. Additionally, the government portion of this program will provide $1,000 for every child born between January 1, 2025, and December 31, 2028. The funds will be invested in a broad stock index and can be accessed at age 18 for purposes like education or starting a business.
Trump referred to Trump Accounts as “the first real trust funds for every American child,” noting they’ll grow through contributions from families, employers, and donors. Susan Dell expressed to the Associated Press that they want these kids to know their families and communities care about them.
Trump Accounts will start accepting contributions on July 4, 2026. Meanwhile, the administration continues to explore whether an Australian-style superannuation model could work for U.S. workers, and how such a significant change would actually play out in practice.
