At the Cato Institute, Romina Boccia and Ivane Nachkebia discuss the Trump administration’s recent interest in the Australian retirement system. Elizabeth Troutman Mitchell from the Daily Signal reported on Trump’s callout of the Australian system during the recent announcement about the Dell family gift to children. Watch:
President Trump just told me that he is looking into replicating a version of the Australian retirement savings accounts program in order to increase the U.S. birth rate.
“There’s a certain Australian plan that people like they’re talking about,” he told @DailySignal.
After… pic.twitter.com/4Amb5kxzl1
— Elizabeth Troutman Mitchell (@TheElizMitchell) December 2, 2025
The “some people” referred to by Trump is most likely Treasury Secretary Scott Bessent, who recently praised Australia’s system. Australia’s Super Members Council reported in February:
The US Treasury Secretary has given a glowing endorsement of Australia’s ‘fantastic’ super system at a Washington DC Summit – attended by super fund leaders who are in America to unlock the best deals for super fund members.
During his address to the US Superannuation Investment Summit, newly minted US Treasury Secretary Scott Bessent said he was struck by how the super system delivered certain growth of Australians retirement savings in a “sustainable” and “regular” way.
The summit, convened by Australia’s Ambassador to the United States, the Hon Dr Kevin Rudd AC, and Australia’s Consul-General to New York, Heather Ridout AO, aim is to promote the profile of Australia’s super system and explore new investment opportunities in the US.
During a question-and-answer session with Ambassador Rudd, Mr Bessent said the super model and its scale was ‘fantastic, especially considering Australia had a population smaller than Florida or California.
Mr Bessent, who was a key economics adviser to President’s Trump’s 2024 campaign, said unlike large sovereign wealth funds Australia’s retirement savings growth was not dependent on particular commodity prices.
“That’s what I was struck by the confidence you have in the growth it’s not what one might expect for Australia … many other sovereign wealth funds .. the volumes are dependent on a particular commodity price – whereas your regularity, sustainability and trajectory are really preferable.”
Boccia and Nachkebia warn against adopting the Australian style system, and instead offer nearby New Zealand’s system as a preferable alternative. They conclude:
If the president wants to look Down Under for retirement-reform inspiration, he should look to New Zealand, not Australia. New Zealand provides a predictable, flat benefit to all retirees through New Zealand Superannuation, which is an effective way to alleviate senior poverty at relatively low cost. Workers are automatically enrolled in the KiwiSaver retirement plan but may opt out, unlike Australia’s superannuation program.
Depending on the flat-benefit level and eligibility rules, a similar model in the United States could eliminate Social Security’s funding shortfall and ultimately reduce payroll taxes, freeing up even more resources for voluntary saving.
Read more here.
