US eyes Australia’s superannuation model to reform retirement savings

Australia’s mandatory 12% savings scheme has built the world’s fourth-largest pension pool. Could it fix America’s retirement crisis?

, and Administrator

2025 December 3 . 7:13 PM

1 min read

In this picture, we see the coin in gold and brown color. We see some text written as "The United... — In this picture, we see the coin in gold and brown color. We see some text written as "The United States Of America". It might be a money coin. In the background, it is brown in color and it looks like a carpet.

US eyes Australia’s superannuation model to reform retirement savings

The United States may soon look to Australia's retirement system for inspiration. President Donald Trump is exploring an Australian-style superannuation model as an alternative to the current US approach. The move comes as Australia's mandatory savings program continues to grow, now holding over AUD 4.5 trillion in assets.

Australia's superannuation system was created to tackle the challenges of an ageing population. Under the scheme, employers must contribute 12% of each employee's income into retirement funds, known as super funds. These savings are then invested, building one of the world's largest pension pools.

The Australian model's success in building substantial retirement savings has caught US attention. If adopted, a similar system could reshape how Americans prepare for retirement. The proposal follows growing interest in mandatory contributions and long-term financial security.