Trump Eyes Australia’s 12% Retirement Model as Social Security Nears 2032 Insolvency
Updated
Updated · USA TODAY · Aug 23
Trump Eyes Australia’s 12% Retirement Model as Social Security Nears 2032 Insolvency
2 articles · Updated · USA TODAY · Aug 23
Summary
Social Security’s trust fund could run short by 2032, and Trump says his administration is studying Australia’s system, where employers must contribute 12% of wages to retirement accounts.
Trump has already ordered creation of TrumpIRA.gov, due by Jan. 1, 2027, to let workers without employer plans enroll in private retirement accounts and widen savings access.
The appeal of the Australian model is broader coverage and lower public cost: the U.S. earned a C+ in Mercer CFA’s 2025 pension ranking versus Australia’s B+, while only about half of U.S. private-sector workers have workplace plans.
Experts split on mandating savings in the U.S. Critics say it would squeeze low-income workers’ pay, while supporters argue universal saving could let Social Security focus more on lower earners.
Replacing Social Security outright looks unlikely because Australia’s age pension is far smaller—about $28,000 a year for an individual in 2025 versus U.S. benefits up to $62,172 in 2026—and current workers have already been promised benefits.