Could Australia’s Superannuation System Fix America’s Retirement Crisis?
Australia’s retirement system has once again drawn international attention, this time from US policymakers. The country’s superannuation program, ranked B+ on the 2025 Mercer CFA Institute Global Pension Index, is now under consideration as a potential model for reform in America. Meanwhile, the US system, heavily reliant on Social Security and optional employer plans, holds a lower C+ rating in the same report.
Australia’s superannuation system, introduced in 1992, requires employers to contribute 12% of an employee’s income into a retirement fund. These contributions are made quarterly, a practice that has remained consistent since the program’s launch. Unlike the US, where employer-sponsored plans like 401(k)s are voluntary, Australia’s system is compulsory for all employed individuals.
If the US were to adopt aspects of Australia’s superannuation model, it could mark a significant shift in how Americans save for retirement. The move would likely involve mandatory employer contributions, potentially raising the country’s global pension ranking over time. For now, the proposal remains under discussion, with no immediate changes announced.
