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Trump says Australia’s 12% ‘superannuation’ system could be a model for the US. What that might mean for your retirement
Yahoo Finance· 2025-12-10 12:00
Core Insights - President Trump suggested that the U.S. could learn from Australia's superannuation retirement system as a potential solution to economic and aging population challenges [1] Group 1: Australia's Superannuation System - Australia's superannuation program requires employers to contribute 12% of a worker's ordinary earnings into a retirement fund, which is automatically deducted [3] - The system has been in place since 1992 and captures nearly the entire workforce, resulting in a pension asset pool of approximately $4.1 trillion [4] - Workers can contribute additional funds up to a cap, but the mandatory 12% contribution is automatic and funds are locked until retirement age [3][4] Group 2: Implications for U.S. Retirement Savings - Trump's comments raise questions about the potential for automatic retirement savings in the U.S. [3] - The discussion includes the introduction of "Trump Accounts," which are investment accounts for children born between 2025 and 2028, aimed at helping them build early wealth [2] - While the Australian system is comprehensive, it is not without flaws, including market risk exposure and potential difficulties for older Australians who cannot access their savings until a set age [5]