President Donald Trump is exploring a bold reform of America’s retirement system by looking "very strongly" at Australia’s retirement model, aiming to introduce portable retirement accounts that could reshape how millions of Americans save for the future.

From the Oval Office, Trump launched tax-deferred "Trump Accounts" for newborns, an initiative supported by Fox Business host Charles Payne, who said it encourages entrepreneurial spirit and expands stock market participation among Americans.

Currently, only a small percentage of Americans have investment accounts, and this proposal could significantly increase that number. If enacted, experts say it would represent the biggest shift in American retirement policy since Social Security was signed into law in 1935.

Historically, many Americans worked for one employer for decades, receiving pensions and Social Security benefits designed for people claiming them at age 65 and living to about 70. However, changing workforce dynamics have challenged this model.

When Trump announced his interest in Australia’s system, many Americans reportedly reacted with skepticism, thinking, "Great — another retirement plan."

The initiative also raises debate about mandatory employer contributions, which some argue act like hidden payroll taxes, as employers might offset costs through slower wage growth or reduced hiring.

Sources