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Trump Directs Study of Australia's Pension System, White House Says Any U.S. Plan Is Preliminary
President Donald Trump directed Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to examine Australia's superannuation model. The move came during July 6 meetings focused on expanding U.S. retirement options. Fortune reported the announcement alongside data on both countries' pension systems.
Jul 12, 4:24 PM·1m read1 source
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President Donald Trump directed Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to study Australia's private pension system. Fortune reported that Trump made the statement on July 6 while renewing attention to parents and grandparents of children holding Trump Accounts. Trump met with BlackRock Inc.
CEO Larry Fink the same day. Fink has advocated for elements of the Australian approach in prior public statements, including a 2024 letter to investors. Australia's retirement system totals $3.1 trillion.
Legislation passed in the early 1990s requires employers to contribute 12 percent of salaries, including for part-time workers, to privately managed funds. The system is projected to rank as the world's second-largest within the next decade. The U.S.
Social Security trust fund faces depletion in 2032. Among five million participants in Vanguard-administered 401(k)-type plans, the median balance stood at $44,115 last year. Roughly 40 percent of private-sector workers lack access to such plans.
A White House official stated that any U.S. plan remains in early discussion and it is premature to conclude it would mirror Australia's model.
