The administration considers employer-funded retirement accounts requiring 12% contributions to supplement Social Security benefits.
President Trump announced on July 6, 2026, plans to explore Australia-style retirement accounts, which mandate employer contributions of roughly 12% of worker pay. These accounts would be market-invested and owned outright by employees, aiming to supplement Social Security, which replaces about 40% of pre-retirement income on average.
Australia’s superannuation system has been cited as a model for its mandatory contributions and long-term growth potential. The proposal does not yet include legislative details or a timeline for congressional discussion. Social Security remains the primary retirement plan for many US workers, particularly those without 401(k) savings.
No immediate market reaction was reported, as the proposal remains in the exploratory phase without formal policy outlines.