Benefits of SG increase a long way off: Deloitte

The effects of the increase in the superannuation guarantee will not be seen for a generation, according to Deloitte partner Wayne Walker.

A Deloitte research paper into the shape of the superannuation system in 2030, co-authored by Walker, found that the Government's proposed gradual increase of the superannuation guarantee to 12 per cent will have almost no impact over the next decade. The paper also suggests that people may reduce voluntary contributions to their super as the superannuation guarantee rises.

According to the Deloitte modelling, the increased superannuation guarantee will see total superannuation assets rise by $408 billion by 2030. The total size of superannuation is forecast to top $6 trillion by 2030 (it currently stands at $1.3 trillion).

Retirement adequacy will continue to be a problem for Australians, even with the increased compulsory contributions, according to the paper.

Deloitte partner and co-author of the paper, Russell Mason, said the average male could expect to retire with a benefit of $217,000 in 2030 - and a woman could expect $139,000.

Mason pointed to data from the Association of Superannuation Funds of Australia Retirement Standard, which showed that a balance of close to $500,000 was required for a 'comfortable lifestyle'.

Longevity risk will continue to be the biggest challenge facing retiring Australians. The Deloitte report found that a male retiring with $217,000 in 2030 had a 78 per cent chance of outliving his retirement benefit.