Donald Trump is looking at introducing an Australian-style DC pensions system into the US, a move that would create a sector with colossal levels of assets under management (AUM).
Trump told journalists at a White House press briefing that: “There’s a certain Australian plan that people are liking and are talking about. A plan for working people. And we are looking at things different from this.”
Asked to clarify whether he meant Australia’s retirement system he said: “Yes, we are looking at it very seriously. It’s a good plan. It’s worked out very well.”
Australia’s superannuation system requires employers to contribute 12 per cent into employees’ DC plans. In three decades it has grown to become the fourth biggest retirement saving sector in the world, with around £2.2trn of assets.
David Harris, director Tor Financial said: “The AUM this would build in the US economy would be immense if this were implemented. This is a wow moment for the DC industry.”
