FSC chief executive John Brogden said the average superannuation fund balance of $75,457 is not enough to sustain a comfortable living standard.
According to the FSC, Australians require a superannuation balance of $424,000 to live comfortably, which provides retirees with an annual income of $32,500.
“Many Australians starting work today will live for more than one century,” said Mr Brogden.
“It is critical that the increased life expectancy of Australians is the driver for age pension and superannuation policy, so future generations of taxpayers are not burdened with the cost of an ageing population.”
Mr Brogden said increasing the preservation age to 65 will reduce the gap between when superannuation and the age pension can be accessed to five years, and increase retirement savings by $1 trillion.
The FSC said every additional year spent in the workforce generates an additional $200 million in savings.
