The superannuation guarantee increase from 9 to 12 per cent would substantially boost Australia's standing in the Melbourne Mercer Global Pension Index.
The index was a pilot study launched in October 2009 and ranked Australia's retirement system as second.
Australia joined Sweden, the US and Singapore in the B-grade category. However, no country in the survey received an A-grade classification.
Mercer partner David Knox, who will be presenting at the Melbourne Centre for Financial Studies forum in Canberra today, outlined what factors could help boost Australia's standing in the index.
The SG boost would be one factor that could push Australia's retirement system to the number one spot in its category, according to Knox.
"Increasing the SG from 9 to 12 per cent is a positive move as it provides more people with adequate income and less reliance on the retirement system," he said.
He said the SG hike would increase the level of household savings by about 1 per cent of disposable income.
The increase in the age pension to 67 years by 2023 will also help improve Australia's retirement system.
"It allows people to work a little bit longer and save more towards their retirement," Knox said.
The availability of a diverse range of retirement income products will also help push Australia's retirement system into the A-grade category, he said.
Mechanisms to keep increasing the pension age and increase the participation rates for older workers will also be critical if Australia's retirement system is to be ranked number one, he said.
The index ranked the countries according to adequacy, sustainability and integrity.
