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BlackRock IncPresident Donald Trump is exploring whether elements of Australia’s retirement system could help address growing concerns about retirement savings and the long-term outlook for Social Security. Trump said he had asked Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to examine Australia’s employer-funded pension model, which requires employers to contribute 12% of workers’ salaries to privately managed retirement accounts. The Australian system has grown to roughly $3.1 trillion and is expected to become one of the world’s largest pension pools. Trump’s interest comes as the U.S. faces mounting retirement challenges, with the Social Security trust fund projected to be depleted in 2032 and many Americans having limited retirement savings. Supporters argue the Australian system encourages higher savings rates and broader coverage, but experts caution that adopting a similar model in the U.S. would be complicated and could face resistance from employers.
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