More than half of Australians retiring in the next 40 years will not have enough income to achieve a comfortable retirement.
That's the finding of modelling commissioned by Industry Super Australia, which is calling for an overhaul of retirement policies in its submission to the Abbott government's tax review discussion white paper.
On average, nearly two-thirds of single women will fall below the comfortable retirement standard, as will half of single men and 45 per cent of couples.
This takes into account their super, the pension and other savings combined.
"One of the main causes is poorly targeted tax breaks on superannuation, which are now wildly out of balance between high income earners and those on medium to lower wages," Industry Super Australia boss David Whiteley said on Thursday.
The analysis finds tax breaks flowing to the top one per cent of Australian income earners will more than double their retirement incomes.
Perversely, the lowest paid Australians, who receive no tax break, suffer a 14 per cent reduction in their superannuation income.
Tax breaks for middle income earners will increase their retirement income by just a third.
"This gap is clearly inequitable and unsustainable," Mr Whiteley says,
To start closing the gap, Industry Super Australia says super tax breaks should be recalibrated, the super compulsory guarantee increased to 12 per cent and the low income super contribution reinstated.
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