Australia's retirement savings gap is now worth $695 billion, according to the latest research from the Investment and Financial Services Association.
This means each person now faces a $73,000 savings gap.
"It is clear that the current super guarantee (SG) must be raised to at least 12 per cent if people are to have any chance of a comfortable retirement," IFSA chief executive John Brogden said.
Besides rasing the SG level, Brogden has called on the government to implement other initiatives, including tax concessions.
"Greater flexibility in the area of concessional caps would greatly assist. Alternatively, much of the shortfall is going to have to somehow be funded out of future government revenue," Brogden said.
"The federal government will have to consider other incentives in this area to ensure further investment in superannuation."
The research was conducted by Rice Warner Actuaries.
The firm produced a similar report in 2004 that found a savings gap of $452 billion.
