AMP chief executive Craig Dunn has called for a re-examination of the superannuation guarantee (SG) level.
Dunn acknowledged that while Australia's retirement system was world class, the industry still faced major challenges, including the need to improve the retirement savings of Australians.
One strategy to do this would be to increase the SG level.
"Obviously such a solution is difficult in the current environment. At some point in the future, however, we do need to re-engage the debate on whether an SG rate should increase," Dunn said, at the Association of Superannuation Funds of Australia lunch yesterday.
Dunn also called for a soft compulsion measure to be introduced, which allows an individual to voluntarily put an extra 1 to 3 per cent into super each time they receive a pay increase, or change jobs.
"Significant success around the world has been achieved through the soft compulsion system," he said.
Dunn has predicted that AMP's forthcoming adequacy report will reveal deterioration in the adequacy levels of Australian's retirement savings, due to the significant falls in the market.
"Our last report in 2007 showed around two thirds of people are on track for an adequate retirement. The age pension, however, is expected to make up half of that retirement income.
"For most Australians, they are a long way from self-sufficiency in retirement." Dunn said.
