Increasing compulsory superannuation payments to 15 per cent will not help the low- to middle-income earners who currently face "a real battle in retirement", the federal minister for superannuation says.
Fresh from launching a book recounting his achievements in office, former prime minister and treasurer Paul Keating emerged from retirement this week to offer advice to the current Labor government.
This included pushing his old campaign to lift compulsory superannuation payments from nine per cent to 15 per cent.
He said the suggestion had been greeted with "not a tonne of enthusiasm" by the Rudd government.
Minister for Superannuation Nick Sherry on Thursday said that while increasing superannuation contributions was desirable, it had to be part of a two-part plan which also included an increase in aged pensions.
Senator Sherry said he had "a list a mile long" of ways to improve superannuation contribution levels in Australia, but he would not make any changes until the end of the year when Treasury chief Ken Henry is expected to complete his review of the tax system.
Mr Henry would look at retirement income, including superannuation and the aged pension, as part of his report, he said.
"It's a battle for people living on a full aged pension - they've got very little super," Senator Sherry told the Fairfax Radio Network.
"Even with the 15 per cent contributions which Paul Keating advocates, the majority of Australians who are currently retired have very little or no super ... they weren't in the system long enough - they didn't accrue enough.
"That's why the issue of the aged pension is just as important as superannuation contributions ... There is a significant group in the community who would face a real battle in retirement."
Senator Sherry said it had been a bad mistake on the previous government's part not to introduce the employee and government co-contribution scheme planned by the Keating administration to begin in 1997 - the year after Mr Keating lost office.
"Unfortunately, the previous Howard/Costello government abandoned that and I think that was a big mistake because it would have lifted the retirement savings," he said.
Senator Sherry said the government would set out options for improving retirement incomes over the next year.
