President Donald Trump said Tuesday that his administration is examining a new retirement savings initiative inspired in part by Australia’s system.
Asked about policies that could help boost the U.S. birthrate, Trump replied: “We are looking at programs. We’re looking at, there’s a certain Australian plan that people are liking and they’re talking about. You know what I mean? There’s a plan where, not for children necessarily, but it’s for people. Working people. And we are looking at other things. Different from this. I think this is very unique. But different from this. But very important.”
He made the comments at a White House event where billionaires Michael and Susan Dell pledged $6.25 billion to support 25 million American children age 10 and under, giving them an incentive to claim the new child investment accounts created under Trump’s tax and spending package.
Why It Matters for Social Security and Retirement
In this year’s annual report, the Trustees of the Social Security and Medicare programs warned that both “face significant financing issues” and that their findings “indicate a need for substantial changes.” According to the trustees, full scheduled benefits under Social Security’s Old-Age and Survivors Insurance are projected to be payable only until 2033. More than 70 million Americans received Social Security benefits in September, according to the Social Security Administration.
How Australia’s Retirement System Works
Australia’s retirement framework centers on “superannuation,” a mandatory savings program in which employers contribute a fixed percentage of a worker’s earnings into a private retirement fund. Workers can also make voluntary contributions, and balances grow over time through investment returns. The money is typically locked in until retirement age, creating a compulsory, nationwide savings pool that supplements Australia’s public age pension.
Inside the Dells’ $6.25 Billion Commitment
The pledge from Michael and Susan Dell builds on the Trump Accounts program. Their donation will use the Trump Accounts infrastructure to provide $250 to qualifying children under age 11.
Under the new law, Trump Accounts are available to any American child under 18 with a Social Security number. Contributions are invested in an index fund that follows the overall stock market. When account holders turn 18, they can withdraw money to help pay for education, buy a home or launch a business.
The program also directs the U.S. Treasury Department to deposit $1,000 into accounts for American children born between January 1, 2025, and December 31, 2028.
The Dells’ contribution will go into the accounts of children age 10 and younger who live in ZIP codes where the median family income is $150,000 or less and who are not eligible for the $1,000 Treasury deposit.
Trump called the donation “truly one of the most generous acts in the history of our country” during the White House event.
How Supporters Are Reacting
Susan Dell told the Associated Press: “We want these kids to know that not only do their families care, but their communities care, their government, their country cares about them.”
Ray Boshara, senior policy adviser with the Aspen Institute and Washington University in St. Louis, told the Associated Press: “We would like to see this idea continue and get better over time, just like any big policy. The ACA, Social Security–they start off fairly flawed but get much better and more progressive and inclusive over time. And that’s how we think about Trump Accounts. It’s a down payment on a big idea that deserves to be improved and there’s bipartisan interest in improving them.”
What Comes Next
Contributions to Trump Accounts will begin being accepted on July 4, 2026.
