Trump proposes Australia-style retirement savings plan

President Donald Trump announced on Monday that his administration is developing a new retirement savings plan for American adults, modeled after Australia's mandatory superannuation system. The proposal, which Trump described as a companion to the recently launched "Trump Accounts" for children, was discussed during events at the White House.

The president said officials are "looking at that very strongly" and would seek to adapt the Australian model, which he praised as having "really worked out very well." He indicated the administration would be discussing the plan with Congress to see if it can be implemented, though no concrete legislative proposal has been released.

Australia's retirement system is built around a "superannuation guarantee," a pillar that requires employers to contribute at least 12 percent of an employee's ordinary earnings into private, tax-advantaged investment accounts. These funds are generally preserved until retirement. The system is often contrasted with the United States' reliance on Social Security, a federal defined-benefit program funded by payroll taxes, and voluntary employer-sponsored plans like 401(k)s.

The announcement comes amid...