More than three-quarters of Australians won't have enough superannuation to last them throughout their retirement, a new report warns.
The report, by financial services group Deloitte, also says that the gradual increase in compulsory superannuation contributions to 12 per cent by 2019 won't benefit retirees until well after 2030.
The legislation for the increase was introduced into federal parliament today.
By 2030, the Baby Boomer generation will be out of the workforce and account for over two-thirds of retirees.
Gen Y will make up 50 per cent of the workforce, followed by Gen X at 38 per cent and the post-Y "Generation Z" at 12 per cent.
Australia's superannuation industry will grow in value to more than $6 trillion by 2030, Deloitte finds in its report, Dynamics of the Australian Superannuation System: the next years 2011-2030.
The estimated super balance for a single male to live a modest lifestyle in retirement is $280,000, according the Association of Superannuation Funds of Australia (ASFA).
Deloitte Actuaries and Consultants partner Stephen Huppert said the average retirement balance for a single male in 2030 would be only $217,000, meaning he had a 78 per cent chance of living longer than his super could support.
"Clearly, Australians will be relying on the age pension for some time into the future," he said.
"So, it is important that any proposals to deal with the ageing demographic consider the superannuation system and the social security system in unison".
ASFA estimates that for a comfortable retirement lifestyle - where retirees are able to enjoy some luxuries - a 65-year-old male needs $40,000 a year or a $540,000 lump sum.
A female needs a $595,000 lump sum due to her longer life expectancy, while a couple need $680,000.
Deloitte partner Wayne Walker said the federal government's increase in the Superannuation Guarantee (SG) to 12 per cent, from the current employer contribution of nine per cent, would deliver an extra $408 billion into super by 2030.
"We will not see the full impact of SG going to 12 per cent for a generation and of itself it is not sufficient to help those people retiring in the next 20 years," he said.
The Deloitte report also found one third of superannuation funds will reside in self-managed super funds by 2030.
