Retire like an Aussie? Trump says ‘we’re going to be taking’ Australia’s successful retirement playbook — but experts warn it’s easier said than done

The US retirement model is anchored around Social Security, which provides monthly benefits to retirees and disabled workers as well. It’s up to employers if they want to offer a retirement plan, most commonly a 401(k). Employer-sponsored contributions to 401(k) plans are optional, compared to Australia where they are mandatory. Experts observe that the Australian model may not necessarily be a one-size-fits-all solution.

“The Australians clearly have an admirable retirement system, and the U.S. system needs lots of fixing,” wrote Alicia Munnell, a senior advisor at the Center for Retirement Research at Boston College, in a blog post. “But it does not necessarily follow that a fundamental restructuring is necessary or even desirable.”

Trump Accounts for adults?

Earlier this month, the Trump administration launched the so-called “Trump Accounts” for children. Every child who is under 18 can set up an account, as long as they have a Social Security number. The Treasury Department is providing $1,000 into the accounts opened for children born between Jan. 1, 2025 and Dec. 31, 2028.

In April, Trump signed an executive order to expand access to retirement plans already available to federal employees for those who can’t access one through their jobs. A bipartisan law signed by President Biden in 2022 had set up a $1,000 “Saver’s Match” for eligible workers who parked at least $2,000 into a qualifying account.

The Trump administration wants to encourage its additional take-up in a program that would launch sometime in 2027.