President Donald Trump has directed Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to study Australia's employer-funded, privately run superannuation system as a potential model for reforming the US retirement system. Trump praised the Australian plan, which mandates employer contributions now at 12% of salaries and has amassed $3.1 trillion in assets, calling it a system people really like that has worked out very well. He discussed the idea with Congress and met with BlackRock CEO Larry Fink, a longtime advocate of the Australian approach. The US faces a looming Social Security funding shortfall with the trust fund projected to be depleted in 2032, while median 401(k) balances remain low and many private-sector workers lack access to workplace plans. Texas Senator Ted Cruz applauded the initiative and said he is authoring legislation to expand retirement savings opportunities for all Americans, though experts caution that adapting Australia's model would require addressing existing Social Security obligations and potential business opposition to compulsory contributions.
BlackRock IncBlackRock CEO Larry Fink is a longtime advocate of the Australian model, and the study could lead to increased assets under management for BlackRock if US adopts similar system.