Social Security has become one of the biggest retirement topics in America. Headlines continue to warn about future funding shortfalls, politicians debate possible reforms, and retirees wonder whether today's system will still look the same a decade from now.
One recent proposal that has generated discussion is whether the United States could learn from Australia's retirement system. Australia's approach is often praised as one of the strongest retirement systems in the world, but it operates very differently than the Social Security program Americans know today.
Does that mean the U.S. should adopt Australia's model? Could it solve Social Security's funding challenges? And perhaps most importantly, what should today's retirees and pre-retirees do regardless of what Washington decides?
Let's take a closer look.
Why Australia's Retirement System Is Getting Attention
Concerns about Social Security's long-term sustainability are nothing new. Current projections continue to indicate that the trust funds could face funding shortages within the next decade if Congress makes no changes.
That reality has prompted policymakers to explore retirement systems used around the world. Australia consistently ranks among the strongest retirement systems globally because of its emphasis on personal retirement savings combined with a government safety net.
Rather than relying almost entirely on payroll taxes to fund current retirees, Australia encourages workers to build retirement assets throughout their careers.
The result is a system that shifts much more responsibility—and ownership—to the individual.
How Social Security Works in the United States
Before comparing the two systems, it's helpful to understand how Social Security currently operates.
Many Americans mistakenly believe the payroll taxes coming out of each paycheck are being deposited into a personal retirement account. That's not how the program works.
Instead, today's workers are primarily funding today's retirees.
This is known as a pay-as-you-go system. Payroll taxes collected from current employees and employers are used to pay benefits to current beneficiaries.
While this structure worked well when there were significantly more workers than retirees, demographic changes have altered that balance. Americans are living longer, birth rates have declined, and fewer workers are supporting a growing retired population.
That imbalance is one of the primary reasons Social Security's long-term funding has become such an important national conversation.
Australia Uses a Completely Different Philosophy
Australia's retirement program starts with a very different assumption.
Instead of relying almost entirely on future workers to fund retirement benefits, the system encourages every employee to build retirement wealth throughout their working career.
This mandatory savings program is called Superannuation, often shortened to simply "Super."
Rather than taxes immediately paying current retirees, employers contribute a percentage of an employee's wages into an investment account owned by that individual.
That money belongs to the worker.
It follows them throughout their career, regardless of how many employers they work for.
The Three Pillars of Australia's Retirement System
Australia's retirement strategy is built around three primary components.
1. Mandatory Employer Contributions
Employers are required to contribute approximately 12% of an employee's wages into that employee's Super account.
Unlike Social Security payroll taxes in the United States, these contributions are invested on behalf of the individual worker.
Employees accumulate their own retirement balance over decades rather than relying solely on future government benefits.
2. Voluntary Additional Savings
Workers may also contribute additional money into their Super account.
These voluntary contributions receive favorable tax treatment under Australia's retirement laws, encouraging additional retirement savings.
In many ways, this resembles Americans contributing additional money into a traditional 401(k) or IRA.
3. Government Safety Net
Australia still provides government assistance for retirees.
However, unlike Social Security, this pension is generally means-tested.
That means retirement benefits depend on a person's income and assets.
Individuals with significant retirement savings may receive little or no government pension, while retirees with fewer assets receive greater assistance.
One Major Difference: Ownership
Perhaps the biggest distinction between the two systems is ownership.
Under Australia's Superannuation program, workers can actually see the assets they've accumulated.
The account belongs to them.
The investments grow over time, and the balance moves with the employee from job to job.
By comparison, Social Security does not create an individual investment account for each worker.
Instead, benefits are determined using a government formula based on lifetime earnings and claiming age.
There isn't an account balance waiting to be withdrawn.
Australia's Retirement Savings Are Invested
Another significant difference is how retirement money grows.
Australia's Super funds are invested across diversified portfolios that may include:
- Australian stocks
- International stocks
- Bonds
- Infrastructure projects
- Commercial real estate
- Other diversified investments
Over long periods, these investments have historically generated attractive returns, allowing retirement balances to grow substantially over several decades.
Of course, investing also introduces market risk.
Unlike guaranteed Social Security benefits, investment values can fluctuate with changing market conditions.
That's one of the primary tradeoffs within Australia's approach.
The Advantages of Australia's System
Supporters of Australia's retirement model point to several important benefits.
Workers Build Real Retirement Wealth
Instead of depending entirely on government benefits, employees accumulate assets that belong to them personally.
This creates greater transparency because workers can actually monitor their retirement savings throughout their careers.
Reduced Pressure on Government Programs
Because many retirees have accumulated significant retirement savings, government pension programs can focus more heavily on individuals with greater financial need.
Greater Flexibility
Retirees generally have multiple options for accessing their retirement savings, including taking withdrawals over time or converting portions into lifetime income streams.
Potential for Higher Long-Term Growth
Invested retirement assets have historically outpaced inflation over long periods, giving workers an opportunity to build considerably larger retirement portfolios than payroll tax systems alone might provide.
Potential Challenges of Australia's Approach
While Australia's retirement system has many strengths, it also comes with tradeoffs. No retirement system is perfect, and understanding both the advantages and disadvantages provides a more balanced perspective.
Investment Risk Belongs to the Individual
One of the largest differences is that retirement savings are invested in financial markets.
That means account balances can rise during strong markets—but they can also decline during market downturns.
Someone approaching retirement during a prolonged bear market could see a significant reduction in the value of their retirement savings.
In contrast, Social Security benefits are guaranteed by the federal government regardless of market performance.
Greater Personal Responsibility
Australia's model places more responsibility on each individual to manage retirement savings wisely.
Workers must choose investment allocations, understand risk, and decide how to withdraw their savings during retirement.
Without proper planning, retirees could potentially spend assets too quickly.
Employers Face Higher Costs
Mandatory employer retirement contributions represent a meaningful expense.
If a similar system were introduced in the United States, businesses would likely face significantly higher labor costs.
Some economists argue employers might offset those costs by reducing future wage growth or other employee benefits.
Could the United States Adopt Something Similar?
It's impossible to know exactly what future retirement legislation may look like. However, discussions about strengthening retirement savings have increased over the past several years.
America has already taken several steps toward encouraging personal retirement savings.
Automatic enrollment in many employer retirement plans has become more common. Contribution limits continue to increase, and recent legislation has encouraged broader retirement plan participation.
Rather than replacing Social Security entirely, it's possible future reforms could focus on combining guaranteed government benefits with greater personal retirement savings.
Whether that ultimately resembles Australia's model remains to be seen.
What This Means for Your Retirement
Regardless of how Social Security evolves over the coming years, one lesson stands out.
Building your own retirement assets provides flexibility.
While Social Security will likely remain an important source of retirement income for millions of Americans, relying on it exclusively can create unnecessary uncertainty.
Your retirement strategy should ideally include multiple income sources working together.
- Social Security benefits
- 401(k) savings
- Traditional or Roth IRAs
- Brokerage investments
- Pensions, when available
- Cash reserves
- Other retirement income strategies
A diversified retirement income plan can help reduce dependence on any single program or investment.
The Importance of Retirement Income Planning
Accumulating retirement savings is only one part of the equation.
Equally important is developing a strategy for turning those savings into reliable income throughout retirement.
Many retirees discover that managing withdrawals is more challenging than accumulating assets.
Questions often include:
- When should Social Security begin?
- Which accounts should be withdrawn first?
- How much can safely be withdrawn each year?
- How can taxes be minimized?
- How should investments change during retirement?
These questions become even more important if retirement systems continue evolving over the coming decades.
Preparing for Change Instead of Predicting It
No one knows exactly how Social Security will change in the future.
Congress could adjust payroll taxes, raise the retirement age, modify benefit formulas, increase means testing, encourage additional private savings, or pursue an entirely different path.
Rather than trying to predict legislative outcomes, investors may benefit more from focusing on factors they can control today.
That includes saving consistently, investing appropriately for long-term goals, managing taxes efficiently, and creating a retirement income strategy that isn't dependent on any single source.
Whether future reforms borrow ideas from Australia or take an entirely different direction, individuals who have built diversified retirement assets are generally in a stronger position to adapt.
Final Thoughts
Australia's retirement system offers an interesting example of how another developed country approaches retirement security.
Its emphasis on mandatory retirement savings, personal ownership of investment accounts, and a government safety net differs significantly from the current U.S. Social Security system.
While some aspects could influence future policy discussions in America, any transition would involve significant economic, political, and practical considerations.
For today's retirees and future retirees, the most important takeaway remains unchanged.
Build retirement savings you control. Maximize available retirement accounts. Develop a thoughtful income strategy. And use Social Security as one component of a well-diversified retirement plan—not the entire plan.
Frequently Asked Questions About Australia's Retirement System and Social Security
Is Australia's retirement system better than Social Security?
Neither system is objectively better. Australia's model emphasizes personal retirement savings and investing, while the U.S. Social Security system focuses on guaranteed lifetime benefits. Each approach has advantages and disadvantages.
What is Australia's Superannuation system?
Superannuation is Australia's mandatory retirement savings program. Employers contribute a percentage of employee wages into individually owned retirement investment accounts that grow throughout a worker's career.
Could the United States replace Social Security with Superannuation?
There are currently no announced plans to replace Social Security with Australia's system. However, policymakers periodically study retirement systems around the world when discussing potential reforms.
Does Australia still have a government pension?
Yes. Australia provides a government Age Pension for qualifying retirees, but eligibility is generally based on income and assets. Individuals with substantial retirement savings may receive reduced benefits or none at all.
What is the biggest difference between Social Security and Superannuation?
Social Security primarily operates as a pay-as-you-go system funded by current workers. Australia's Superannuation system allows workers to accumulate personally owned retirement assets invested throughout their careers.
What lesson can Americans take from Australia's retirement system?
One important takeaway is the value of building personal retirement savings in addition to any government benefits. Diversifying retirement income sources can provide greater flexibility and financial confidence.
Daniel Wendol
Item #1
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We know social security is in trouble in the United States and we’re looking at different ways of solving it. We’ve done shows on it in the past, but most recently, and I say recently, July of 2026, President Trump was caught saying something about the interest level in what Australia is doing with their retirement system. And I thought, wow, that would be an interesting change of direction because Australia’s system is similar yet very different than what we do here in the United States. So today I
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want to go through some of the key differences, what’s working in Australia, what’s not, how it relates, and whether or not you need to be aware of it because I do think you do. You need to be paying attention to this because some of the things that have already happened in this country are moving toward what they’re doing in the land down under. All right, let me bring in my co-host Tony. Welcome to the show. >> Well, Dan, it’s funny you should mention Down Under. I was just listening uh to
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Men at Work. I I don’t know if you can hear that, but we’re going to >> You see, Dan, I was traveling in a fried out Gumby. I don’t know what that even means. >> On a hippie trail head full of zombie looking for my social security benefits. >> Hang on. gave me breakfast. >> She took me in and gave me breakfast. >> Dan, I just have a one question for you. Let’s listen to this. >> Do you come from a land down under where women glow and men plunder?
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>> I don’t know if if they’re talking about plundering and thunder uh in down under, do we really want their social security uh system? >> Fun fact, Tony, I actually studied abroad in in Sydney at University of New South Wales. So, I learned a few of those lyrics. I think they say the word where men chunder, which means to grow up. >> Oh, yes. I I got where men chunder. That’s right. >> And I look like I haven’t shaved in a while. I look like I I got a little I
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used to think I had a little Vegemite colored beard, but it’s all gray mostly. So, >> yeah, you grew you grew a beard. For our viewers, Dan has a beard now, and I just uh I offered before the show. I’m like, Dan, if you’re razor broken, you’re too cheap to buy another one. I you’re always saying to people, uh, you need permission to spend, Dan. I’m giving you permission to get a new razor at this point. >> All right, I cut through the nonsense with that razor, Tony. Let’s get right
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to it. So, Australia, >> yeah, >> they have something called the superanuation, uh, or super model. And Trump was recently, uh, quoted, uh, let me see if I could find it. He said uh multiple times in July, I’m very seriously looking at Australia’s superanuation system, calling it a good plan that worked out very well and he was going to make it sharper. That’s the quote. Even better or sharper. So, who knows what that means? >> But I do believe that there is something
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to be said about what they’re doing in Australia. I just don’t know if it applies. >> Okay. So I don’t go through it because I don’t know if you the listeners probably don’t know a lot about it. >> I don’t know a lot about this. >> Yeah. So I’m going to do like a little headto-head comparison just to kind of give it viewers what we might be facing in the near term as a replacement or an adjustment to our social security system >> because uh you know why not why not it’s
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what we’ve been doing doesn’t seem to be sustainable as it is. So, um, you know, there’s a Mercer Global Pension Index. It’s some body that measures who’s doing it right and wrong. Australia’s got a B+ strong on sustainability and United States has got a C++ because it’s not very sustainable as we’re seeing 2032 we’re going to be in a shortfall, right? >> Yeah. >> We are at a deficit, meaning we’re bringing in less money than we’re paying out in social security. Australia’s got
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a four plus trillion dollar super fund of assets. Money that is actually there. So how does it work? Like how well what are they doing? >> Yeah. >> You know that’s what I want, right? >> Um it’s not that simple. >> Okay. Australia’s got a three tier system. There are three pillars, right? So the first pillar is a mandatory super contribution from the employer. That’s one. Then they have a voluntary extra contributions and then behind that they have a meanested
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means tested pension for a safety net like we have disability. Um okay or SSI I should say. So putting it in real numbers here in Australia when you work and have wages your employer has to contribute 12% >> Wow. on top of whatever they’re paying you. They have to take 12% and put it in your personal super account. That is your account. It’s tied to you. It’s a actual dollar amount that you have access to and can completely drain in the future. So unlike what we have, we have the 12% payroll tax. Half of
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which is the employer and half of which is you listener or worker. That doesn’t go to you. That goes to pay the people that are currently collecting social security. So those taxes come out of your paycheck and go to pay the people that are currently on social security retired. Whereas in Australia, that 12% from the employer goes right into an account with your name on it. Did you know that, Tony? >> Uh, no. Uh, no. >> I have a feeling you don’t like it now. >> No. >> I have a feeling you like the idea of
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Australia, like, oh, let’s do what they do. But then when you find out they have this private pension per person, >> you’re like, wait, I don’t like that. >> No, no. I I I think it’s so far I’m with it. I mean, yeah. >> Okay. So, um, you own it. You own in Australia. You own your super from day one and it follows you when you move jobs and it’s mandatory across the entire country. Wherever you work, the employer is putting in 12%. So if you move to a different job, you still have
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that same amount that’s there and you can also add to it on your own. They call that salary sacrifice. How good is that? >> That’s call it a salary sacrifice. >> I like that. It’s just direct. They’re not going to sugarcoat it. Right. Salary sacrifice. Oh, here’s a little tax nerd thing that I I found very interesting. If you put in pre-tax money into the or salary sacrifice into your super fund, that’s taxed at 15%. Whereas in the US, it’s taxed at ordinary income tax rate. And then you
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can also put in after tax dollars into your extra into your fund. And when you take the money out, you don’t pay tax on it generally speaking. So, I found that quite interesting. >> Yeah. Well, I mean, so far it sounds great. I mean, I don’t know how uh applicable it is for here. I I think everything sounds great to me personally. I I think I would like it better than our system from what you’re saying. However, um the initial thing where >> companies have to contribute 12%.
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>> Um yes. Are they just going to lower uh if they’re just going to lower your salary by that amount uh to to pay for that? How is the company going to pay for that? I mean, America is tied our whole economy is tied to corporations and spending and um uh yeah, I mean, you know, corporate profits drive the stock market. So, um or corporate earnings, I should say. So that that’s my only that’s the I think it would be a tough sell to the lobbyists and to all his buddies like Elon and all those folks uh
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who you know own big companies goo the Google machines and the metas and the gates. >> Oh, there’ll be a huge resistance from corporate America saying I’m not putting in 12%. I mean but let’s let’s think about this though. They’re currently putting in 6.2 >> right >> for taxation for it. So, it’s basically doubling the tax that the employer pays. Um, but but that social security program wouldn’t have any funding. If you say, “Let’s do an additional 12%.” What it
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really is, Tony, it’s a 401k. >> It’s it’s a mandatory 401k with a 12% employer contribution. Imagine that. Imagine where your 401k was 12% your comp whatever your salary is mandatory that your employer put 12% of your salary into you your own 401k. >> Yeah. Yeah, but it’s a little different because it’s also a it’s also working like social security or a pension like an annuity where it pays out a monthly stipened when you at some point, right? So, in other words, or is it just like a
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401k where you we’d have the same problem we do here, uh, where we went from pensions to 401ks where the individuals responsible and so when they retire, they’ve got a lump sum and they have no idea how long that will last or how to turn it. And that’s why Dan Wendell and every other financial advisor out there has a job because we don’t know how to turn a lump sum into guaranteed income. Right. >> Hey, mate. Hey mate, you’re being you’re you’re assuming that those Aussies don’t
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know how to handle this. You’re But you’re right. No, it’s it’s not a guarantee. You can have it become an income stream, but it’s not. You could take when you retire in Australia, you could take your super as a lump. >> Yeah. >> So that this is where it gets interesting. The other part is that you can you’re this lump sum this super pension the superanuation is actually invested in the Australian market and the US international markets. >> Wow. >> So they see what they have in there and
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it’s invested so it’s growing. Like everyone talks about let’s privatize social security. This is what Australia’s done. They take your pension or your your savings in this super and they invest it and they get decent returns over the past 10 years. It’s been 8% or so. So, you see these amounts going up and you it’s tied to your name. So, you see the light at the end of the tub. There’s my lump sum or >> um >> but they do offer monthly they do offer a lifetime income stream as well as an
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option. So there there there’s two things that are happening. >> Okay. >> The first is this superanuation. So you can’t touch it until you’re 60 and they don’t have as many exceptions like we do in the US, right? >> You know, the the 72T the you’re 55 retirement, you know, disabled. You have to either at 60 you have to be fired, let go, no longer working, or you um you have to be permanently disabled. Okay? You can’t just be like, I’m retired. I’m
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going to take it at 60. Between age 60 and 64, they allow you a 4 to 10% withdrawal rate. So, you can’t take it as a lump sum. But once you hit 65, free reign, lump sum. So, my thought is, oh, well, they’ll run it, like you said, Tony, 65, take it, lump sum. I’ll take my total pension, whatever I have in the super, and I’ll run and be done. Mhm. >> And then I’ll be destitute, right? No. What happens is there is a separate program like our social security that guarantees
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a baseline income for all residents and that is in addition to the super. So they have both where >> so you can get the super lump sum and take it as a lump sum and then there is another backup system >> where they’re guaranteed a lifetime income. >> Yes. Yes. So by the way that >> that’s that that super is like a 401k. You choose your risk level and you can have a 8020 or or 2080 if you know bonds to stocks stocks to bond you can change. You can have international domestic
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whatever. So that’s growing and so there’s some risk there. You know, as we know, you can actually have a lost decade like we did. I’m sure the people in Australia right now are saying, “Man, the the international markets, meaning US, are so high. Maybe we should be toning it down because I don’t I’m going to retire soon and I don’t want to lose everything.” But let’s say they do. There’s a separate plan which is funded by the government of Australia and that
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is the same revenue, general revenue that pays for their hospitals and schools and such. That is a guarantees a lifetime income for anyone that has and it’s means tested. So they look at your income and assets. >> Sure. >> And for for instance a single homeowner, you get that full pension if your overall assets are under $333,000 >> once and then it scales down once you get part of your pension. They call it a pension like social security. as long as you have less than $733,000
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in assets. So if you have a big 401k or superanuation there, you don’t get any additional benefit. >> Sure. >> So if you have a million dollars of investable assets assets, you don’t get a a pension. If you have more than 733,000, you get cut off if you’re a homeowner. If you don’t have a home, if you’re a renter, then they raise it up to a million. So they include the value of your home in this calculation. So if you look at it this way, Tony, okay, I have my superanuation, my 401k,
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which I’m getting a 12% from the government, and it’s growing. I can add to it all I want personally. Now I have a million dollar pension. I don’t get anything else. But what you could do at 65 is you take that million-dollar pension and you spend it. You go on luxurious vacations to visit your relatives in northern Minnesota and the United States and then you fly home and the next thing you know your million dollars is 500,000. As soon as your pension or your total assets go below that amount, now the
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government kicks in their monthly paycheck to you. >> That sound weird. So you could do both if your assets are low enough. So what the country is basically saying is you pay for your own retirement until your assets fall below our predetermined level and then once you’ve hit that then the federal the government of Australia will pay you a pension >> lifetime income. >> Yeah. >> So that other thing is a safety net. Uh >> it’s a safety net. But if you think about it, it’s $333,000 of ass. This
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isn’t isn’t destitution like it would be, you know, and they pay more. They pay 1,200 per Fortnite. Oo, fancy fancy >> terite for the nonustralians. >> That means every two weeks. >> All right. >> $31,000 a year is the pension, the full pension for an individual. >> Sure. which is higher than the average social security check. >> Yep. >> So they’re paying more. They’re paying more. So really the government of Australia is paying more out than our government is paying uh if
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you look at it just as the average Joe. >> Yeah. Because our average is around 2,000. It’s actually a little less. Yeah. >> Right. So they have a defined benefit I mean uh defined pool of money that you get and a baseline if you assets go below whereas in the United States it’s all a formula and you’re paying the pay as you go you’re paying the people that are collecting. So you know could this work in the United States and I think this is where Trump is going. He’s like, “Oh, I just
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did the what did they call them? The Trump plans, kid plan, whatever. Any child can get $1,000. They can put in up to 5,000 a year into I we’ll do a show on that.” Um, but if you were born in the United States in 2026 or five, you get a,000 bucks extra. I That’s going to be like an IRA for kids. I think he’s looking to do that to replace social security >> or, you know, kind of combine it just like Australia does. >> Sure. Yeah. It’s um it’s interesting. I mean, I don’t know if it would work on
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the scale uh for the United States. Plus, that 12% contribution from corporations is going to be a >> Oh, yeah. Well, you’re right. the scale. There’s 27 million people in Australia and there’s 343 million people in Australia, >> right? >> 13 14 times the amount of people. >> A little different. >> So huge difference um just in sheer volume because already Australia is struggling to keep track because they have a look back period 5 years because I was thinking to myself, what would
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Americans do? All right, I’m gonna have my 12% going into my from my employer. Now I have, you know, a million dollars. Let’s just just use round figures and say I have a million dollars built up over my 40-year career. >> Soon as I retire at 65, lump sum, million dollars, I’m renovating my house. I’m buying a new car. I’m spending I’m giving it I’ll give it away. I’ll send it to my relatives in Minnesota, you know. Um, now it’s gone. Oh, I spent it all. Sorry. Now give me
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my $33,000 a year from the government. >> And so people would do that. And so I’m I’m cynical. Of course they would. >> But I think most people would do that. >> Yeah. >> They want to double dip. >> Yep. >> Right. >> Of course they do. >> Right. So what do they do to combat that in Australia? Well, it’s an honor system. And they look at the past five years of gifts. So if you give I think it’s more than 10,000 a year. They say, “Where did that go?” And then you have
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to say, “Oh yeah, I gave it to my friends.” Well, then you then you have that look back period of 5 years. That counts against you. You don’t qualify. that those assets get added back so you don’t fall below, >> right? >> Um and then you have to be a resident of 10 years of Australia. So you can’t just show up and get the pension. >> Yeah. >> Whereas though, if you think about it in the United States, if you don’t put any money into social security, you’re not
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getting anything back. You’ll get SSI, which is about 990 a month. >> So, and that’s a $2,000 limit. So the Australian system has double the amount at least double the amount of income baseline and >> you can have 300 $400,000 of assets versus 2,000. >> But you’re you said it right off the bat, Tony. There’s a huge shift between social security which people love. They got a guarantee from the US government. It’s got a guaranteed cost of living adjustment and it’s guaranteed for life
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and it covers your spouse if you die. Right? So there’s some guarantees here that are or our government is giving whereas in Australia that superanuation man you you’re at risk. So your portfolio can tank if you if investments don’t work out. And who do you blame for that? can’t you can’t ask for more from the government if you invest it and it goes down and they even have some private investments. They have investments in bridges and public works projects. So those can go under, right?
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Um so there’s a huge shift to the risk to the individual versus the government protecting us. And I think that that’s acceptable in Australia, whereas culturally we would rather not like a government mandating 12%. Each individual individualism, we’ll do it ourselves, which is why we have the 401k, which most people don’t even take part in. You know, the government the employer might match 4%, but most people don’t even do that. So, I don’t know. I’m not sure what the
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I’m not sure if we’re going to take anything from Australia or not. I think we will. I think this is going to be the new future. There’s going to be some balance. I do think our country is going to move toward more of a savings tied to an individual versus a pool of money that is shared. >> Sure. >> Like social security is now. I do. >> Yeah, I can I can see that happening. I I mean, the problem is you’re not going to get um it’s not going to be uh by the time if this thing were able to pass or
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they do make these ch you know a radical shift uh the 12% coming from the companies probably that’s that’s lower. Uh there’s some things that won’t wouldn’t be the same. Um, but do I do do I think our government would shift rather from the government being responsible for social security to putting more of the onus on individuals? Of course. And they’ve wanted to privatize it. I think they >> I think there’s a lot of argument to p privatize a form of social security. I
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just don’t know if the general public will get behind it or not. Probably um if it if it fixes it. >> Yeah. I mean already we have Medicare, Social Security, unemployment, workers comp. These are all taxes that the employer is responsible for. You add in this on top, it’s going to increase labor costs tremendously. So everything’s going to cost more. Or more likely, they’ll just lower the wages like you said at the beginning. Oh, we have to contribute 10% of your salary into some
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401k. Well, okay, fine. I’ll do that. But instead of paying you a h 100,000 a year, you’re paying I’m going to pay you 90. >> And I’m because the government’s forcing me to put 10% in. That’s just what’s going to do. It’s going to hurt some old businesses. So, you know, self-employed. Now, if you’re self-employed in Australia, you’re not required to do the 12%. So, I don’t know how that works. But, um, >> and that it’s going to be toxic talking.
00:23:23 – 00:24:30
I mean, Trump’s talking about it now. Everything he says is toxic already for half the country. Um, I don’t think this is going to be wellliked by anybody. Not many people. I like the idea because I think the way social security system is designed now, it’s not sustainable based on just demographic shifts. But this transition period, oh boy. Oh boy, man. Um, and transitioning from a means to a means-ested payout. You think about all the people like you, Tony. You’ve put in social security your whole life. All of
00:23:57 – 00:24:56
a sudden, they’re gonna say, “No, you’re not gonna get any. You’re not gonna get any because you uh you have too much money.” >> Yeah. >> Bottom line for the viewers, listeners, you have this option. You have what Australia has already. It’s called the 401k or an IRA. Work it. Build your own little pension that you control. Don’t rely on the government. Social Security. I always say this, Social Security is not going to be the beall end all. Use it. Maximize it. We do that all the
00:24:26 – 00:25:26
time. But be self-sufficient and build your own nest egg outside of the government program because that’s the only way you can ensure your future is to be self-reliant as as hard as it is to say. >> Yeah. >> Here it is, Tony. >> Wow. What do you think? >> I think you’re going to be speaking Australian English soon. >> Put another shrimp on the barbie. Do I have to say that? I mean, >> isn’t that Isn’t that from Crocodile Dundy? That’s not a pension. This is a
00:24:55 – 00:25:51
pension. >> And that’s the problem. Americans, their view of Australia is crocodile dend. And I don’t know how accurate that is. Well, hey, u Dan, fascinating. They’ve got to try something. I loved hearing about this. I mean, it is interesting to hear what other people do and if we can incorporate the good from other systems and improve ours, why not, right? >> Why not? >> Yep. >> So, we’ll see. I have a prediction, Tony, that in the next two years, you’re
00:25:25 – 00:26:19
going to hear a lot more down under discussions. Or and and I’ll tell you what, if we don’t if we don’t Here’s a bet, Tony. If we don’t have a lot of down under um discussions, I will personally pay for you to go see the Thunder Downunder in Las Vegas. How’s that? >> Yeah. Yeah. There you go. The Thunder Down Under in Las Vegas. >> Have a good week, everyone. Thanks for a great show, Tony.