Mr Brogden said many Australians working today will live for more than a century and consequently accessing superannuation at 60 is no longer viable.
He also argued that for every year the preservation age is increased, the savings of Australians increase $200 billion.
The FSC said it is also advocating for reduced eligibility for the age pension and for the age pension to be linked with life expectancy.
“It is critical that the increased life expectancy of Australians is the driver for age pension and superannuation policy so future generations of taxpayers are not burdened with the cost of our retirement,” said Mr Brogden.
Association of Superannuation Funds of Australia chief executive Pauline Vamos also agreed with the five-year gap between the preservation age and the age pension.
However, she said any changes to the pension system should be phased with a long-term approach to ensure people have the “sustainability and certainty they need to plan how they will fund their retirement years”.
Ms Vamos said it was also important for the government to consider social and health-related factors in making further changes to the qualifying age.
“For many people, once they reach their late 60s and early 70s, they are either unable to work at all or can no longer physically perform the roles they have been working in," said Ms Vamos.
“This may require governments to offer some form of relief or carve-out for individuals who have spent a lifetime in labour-intensive work, if they are to raise the pension eligibility age to 70.”
Ms Vamos noted that retraining workers is not always an option as many workplaces are unsupportive of older workers.
“This means many individuals in this age group are likely to be forced to apply for the Newstart allowance or the disability pension in order to survive,” said Ms Vamos.
ASFA has also estimated that an increase in the age pension eligibility age would force around 40 to 50 per cent in the 67 to 69 age group to seek the disability pension or Newstart allowance.
“This would substantially reduce the projected savings to the budget bottom line from increasing the eligibility age," says Ms Vamos.
“Ensuring there are work opportunities for older Australians is also crucial, which is why any increase should be matched by government policies which encourage employers to take on older workers.”
ASFA is encouraging the government to consider policies that encourage people to take up income stream products in retirement to help people manage their superannuation savings across their retirement years.
“Such policies could also encourage innovation of post-retirement income stream development, and help deliver a more flexible range of options to suit a variety of retirees' needs,” said Ms Vamos.
