A key organisation representing Australia's superannuation industry says a rise in everyday expenses is driving an increase in how much money is needed for retirement.
The Association of Superannuation Funds of Australia is calling on Australians to contribute more to their super funds, but that does not necessarily have everyone's support.
Turning on a light, charging a phone ... they are simple daily rituals that come at a cost.
The Association of Superannuation Funds of Australia has been monitoring everyday expenses like power, food and health care since 2006.
And chief policy officer Glen McCrea says price hikes are driving up how much money is needed for a comfortable retirement.
"Look, it's a key vehicle, superannuation ... super is. But, look, your home is as well, and there's no doubt that that is really important. What we encourage people to do is to look at their super balances, think about how far away they are from retirement and, where they can, put in a little bit extra, because, with the benefit of compound (interest), it can make a big difference in your balances in retirement."
Assuming a person owns a home, the association estimates that, in 2006, a single person needed $35,000 a year for a comfortable retirement.
But in 2014, that had risen 23 per cent to $42,000.
A comfortable budget for a couple in 2006 was $47,000, but that has risen similarly to $58,000.
But how realistic is it for people on average wages to put away that little bit extra?
Adjunct Professor Eva Cox, from the University of Technology, Sydney, has looked at the development of superannuation in Australia.
"Most people who earn under 80-odd thousand (dollars) a year will be very lucky if they save enough money in their superfunds to do anything more than supplement an aged pension, have some additional money to cover themselves when they need lump sums ... But the idea that everybody will be able to retire independently of government pensions is a lot of rubbish."
Employers must contribute 9.5 per cent of a person's salary into a superannuation fund.
The association is encouraging people to contribute more.
But some Australians on the street say they question whether it is better to spend that money now or later.
(First:) "Paying extra out of it definitely means I need a rise in my wages, a rise in our income, but that definitely is not going to happen."
(Second:) "It is important that my wellbeing today doesn't compromise my wellbeing tomorrow."
(Third:) "As a millennial, I feel that I should be, like, putting away a little bit more, but, at the same time, I feel like the government should be doing more and increasing the superannuation rate to 12-and-a-half per cent."
Another industry body has also released a report revealing bank-owned superfunds collected almost $9 million in super fees in 2016.
Industry Super Australia's David Whiteley says that is a concern.
"We know the banks have roughly around about 20 per cent of total market share of super. They're, of course, used to having 80 per cent market share in credit cards and home loans and other banking products. What our concern is here is that the fees generated by the banks out of super are disproportionate when compared to their market share, and it could well be reducing their fund members' nest eggs."
Share
