President Donald Trump is looking at retirement plan said to be successful in Australia as he casts about for ideas to reform America's retirement plan.
Recent reports indicate Social Security is running out of money and will likely be broke by 2033, so now President Trump says he likes the Aussie plan that uses a 12-percent-of-earnings savings account administered by market professionals.
Unlike Social Security, the Australian plan does carry some risk, according to Alicorn Investment Management financial analyst Bill Dendy.
"This may be a solution for longer-term savings and it makes more sense as a solution compared to the additional saving people do in their 401(k) plans," he says.
"Savings of a certain rate, maybe five-to-ten-percent, may be palatable to the world and it may be something that will kind of smooth the playing field."
There's one aspect of the Australian plan that Dendy likes, though, that's quite different from Social Security.
"If they die before they get to use the money, that money gets left to their kids, the next generation, which is typically different, if you turn on your Social Security and you die next week, then there'snot much going to your heirs."