Trump looks to Australia for Social Security fix

President Trump says he’s looking to Australia for inspiration on how to overhaul his nation’s Social Security system and put people in “much better shape” by retirement age.

Australia’s superannuation system requires companies to contribute a percentage of their workers’ pay into a retirement plan.

The U.S. operates as more of a “pay-as-you-go” system in which workers and employers pay set taxes into a system that provides benefits to retired and disabled workers, as well as their families and survivors.

There is a cap on wages for paying Social Security taxes, set in 2026 at $184,500, and there has long been a debate about lifting that cap. Benefits are paid out based on a worker’s average indexed monthly earnings during the 35 years in which their earnings were highest.

Trump signaled anew that Australia’s system is on his mind Monday, when he remarked that the country “has a thing going that’s very good — it’s really worked out very well.”

“We’re looking at that very strongly,” he said during a Rose Garden lunch that celebrated the launch of his Trump Accounts for kids. “We’re going to be taking that, and we’re going to be maybe making it a little bit sharper, a little bit even better. But we’re going to be doing that.” 

He said it would put people in “much better shape” when they hit retirement age. Earlier, he said the administration would be speaking with Congress to see if the program could be implemented.

“It’s something that’s going to be great, I think, if we can get it done,” he said.

When asked for more information, the White House referred The Hill back to the president’s comments.

Trump first expressed his interest in Australia’s program in December while announcing the $6.25 billion donation from Michael and Susan Dell for the Trump Accounts.

“There’s a certain Australian plan that people are liking,” he said at the time. “There’s a plan where, not for children necessarily, but 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........

© The Hill