"Australia's retirement system centers on superannuation, which requires employers to contribute to private, tax-advantaged funds that grow until workers retire. Workers can add voluntary contributions and accounts increase over time through investment returns. The administration's interest in similar policies comes as Social Security and Medicare face mounting financial strains. Federal trustees warn that Social Security's main trust fund will be unable to pay full benefits after 2033."
"The proposed plan comes at a time when American retirees are facing shortfalls. Even though millions of older Americans will get a 2.8% boost in their Social Security checks starting in January, experts say the cost-of-living adjustment won't keep pace with rising expenses such as food, housing and health care. Trump described the retirement plan as a program for working adults, and said it is separate from new child investment accounts included in his tax and spending package."
"Trump made the remarks at an event where Michael and Susan Dell pledged $6.25 billion to support Trump Accounts, which aim to provide investment accounts for 25 million children. As a result, the U.S. Department of the Treasury will deposit $1,000 into accounts for children born from Jan. 1, 2025, through Dec. 31, 2028. The Dells' donation will give $250 to eligible children 10 and under in lower-income ZIP codes who won't receive the Treasury's $1,000 contribution."
Australia's retirement system uses employer-mandated superannuation funds that are private, tax-advantaged, and grow through employer contributions, voluntary additions and investment returns. Interest in adopting similar policies in the United States arises as Social Security and Medicare confront growing financial pressures, with federal trustees warning Social Security's main trust fund may not pay full benefits after 2033. Many American retirees face shortfalls despite a 2.8% Social Security increase, as cost-of-living adjustments lag rising food, housing and health-care costs. The retirement plan was described as for working adults and is distinct from new child investment accounts supported by private and Treasury contributions.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]