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 has been monitoring everyday expenses like power, food and health care since 2006.
Chief policy officer, Glen McCrea told SBS World News price hikes were driving up how much money is needed for a comfortable retirement and recommended Australians contribute more to their super funds
"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,” Mr McCrea said.
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In 2006, the association estimated a single person who owned a home needed $35,000 a year for a comfortable retirement.
But in 2014, that figure had risen 23 per cent to $42,000.
A comfortable budget for a couple in 2006 was $47,000, but by 2014 that had risen similarly to $58,000.
Sydney University of Technology Adjunct Professor Eva Cox has looked at the development of superannuation in Australia.
Adjunct Professor Cox said it wasn’t realistic for people on average wages to put away that little bit extra.
"Most people who earn under $80,000 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," she said.
"But the idea that everybody will be able to retire independently of government pensions is a lot of rubbish.”
While employers must contribute 9.5 per cent of a person's salary into a superannuation fund, the association is encouraging people to contribute more.
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 said this was a concern.
"We know the banks have roughly around about 20 per cent of total market share of super," he said.
"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.”
