President Trump is exploring Australia’s superannuation retirement system for potential U.S. adaptation. The system, in place since 1992, mandates employers to contribute 12% of a worker’s earnings into a retirement fund. This has led to a $4.1 trillion pension asset pool in Australia, capturing almost the entire workforce.

While Australia’s system isn’t perfect, it raises questions about the effectiveness of the U.S. voluntary retirement savings system. Trump’s consideration of a potential mandate like Australia’s could lead to larger nest eggs for American workers. This move could reduce reliance on Social Security and improve retirement outcomes.

The U.S. currently lacks a mandatory retirement savings structure, leaving many workers responsible for their own future financial security. While there is no immediate policy change, individuals can take steps to improve their retirement outlook. Maximizing employer matches, adjusting contribution rates, and understanding fees and investment options are key.

Although Trump’s interest in the Australian retirement system doesn’t guarantee adoption in the U.S., it highlights the need for a more solid retirement savings structure. Until any changes are made, individuals can focus on improving their own contributions, investments, and long-term planning for a secure retirement.

Read more at Yahoo Finance: Trump says Australia’s 12% ‘superannuation’ system could be a model for the US. What that might mean for your retirement