Trump Develops Australia-Style Retirement Plan With 12% Savings Model

Q: Will the 56 million targeted workers be automatically enrolled to ensure the program's success?

No. Based on the administration’s plan as described so far, the targeted 41 million to 56 million workers would not be automatically enrolled. The proposal behind TrumpIRA.gov is built as a federal platform that connects workers without employer-sponsored retirement plans to private-sector IRAs. Workers would be able to compare options and open accounts themselves, and the program would use incentives such as the new Federal Saver’s Match to encourage participation. The materials provided say the framework does not impose new employer requirements, which is a key reason automatic enrollment is not part of the initial design. That matters because automatic enrollment is widely seen by retirement experts as one of the strongest tools for boosting participation. Analysts cited in the supporting material say opt-out enrollment and payroll deduction would likely produce much higher take-up, especially among lower- and moderate-income workers. Some experts have urged Congress to add those features later. For now, though, the plan appears to rely on voluntary sign-up rather than mandatory or automatic enrollment. Any move to require employers to facilitate enrollment or payroll deductions would likely need congressional action. So while automatic enrollment may be discussed as a future improvement, it is not currently part of the announced program.

2 articles · Updated · Fox Business · Jul 6

Trump said his administration is crafting a retirement savings plan for U.S. workers modeled on Australia’s system, framing it as a companion to the new Trump Accounts program for children.
Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick are already working on the proposal, which Trump said will be discussed with Congress in a push to get it enacted.
Australia’s superannuation system requires employers to contribute 12% of ordinary earnings into tax-advantaged retirement accounts, a structure Trump said the U.S. could adapt and improve.
The renewed effort comes as Washington faces pressure over Social Security’s long-term finances, though retirement researchers say any broader fix would still require shoring up Social Security and expanding workplace plan access.