A major superannuation survey of generational cohorts has revealed cost-of-living pressures and longer life expectancy mean retiring comfortably may be a challenge for many.

Only 32 per cent of Australians said they could save for a comfortable retirement ($595,000) without compulsory superannuation, while 15 per cent reported they would have no retirement savings if not for super, according to the Superannuation Across Generations survey conducted last month.

The wide-ranging AustralianSuper survey was also notable for its lack of Indigenous-related customer data, with super funds currently unable to fully capture their First Nations customer base due to industry practices.

First Nations financial literacy advocates and other organisations recently urged industry reform so Indigenous people could voluntarily self-identify and have their data captured and used to analyse how they interact and benefit from saving for retirement.

AustralianSuper chief member officer Rose Kerlin said analysis of most recent HILDA (Household, Income and Labour Dynamics in Australia) data showed median super balances for Indigenous women were $20,000 and for men $27,000, compared to $50,000 and $80,000 respectively in the general population.

"These lower balances stem from significant working life disadvantages, such as lower workforce participation, lower wages and higher rates of disability and involuntary retirement," she said.

A range of reforms would address inequity and help Indigenous people leverage their super, such as expanding the Low-Income Super Tax Offset (LISTO) for people earning up to $45,000.

"LISTO is designed to refund the superannuation contribution tax for low-income people to ensure they get a fair tax concession on their super contributions," Ms Kerlin said.

"It recognises that 15 per cent tax on super contributions is not concessional for those on low-income, who pay 0 per cent or 16 per cent tax on wages."

Ms Kerlin said LISTO had failed to keep pace with increases in superannuation guarantees and tax bracket changes, which dumped a tax concession for low-income earners.

"Expanding LISTO by increasing the cap to fully offset the SG (currently 11.5 per cent) and increasing the threshold to the top of the second tax bracket (currently $45,000), will improve super outcomes for all low-income earners, including Indigenous members," she said.

First Nations Foundation chief executive Phil Usher said it was crucial the data of Indigenous customers was captured and analysed, particularly for the next generations of First Nations workers.

"Data that helps paint a picture of Australia's engagement with the super system is absolutely crucial," he said.

"This is why current practices within super funds that don't allow Aboriginal and Torres Strait Islander people to voluntarily self-identify create a real problem."

Better data collection would help inform reforms required to fully understand First Nations people's engagement with the superannuation sector.

"The data we do have shows significant gaps in median balances, but without self-identification practices in place, we'll never truly comprehend the retirement standards of Indigenous people," Mr Usher said.

"This is especially important for younger generations. For the first time, Indigenous people are being paid more and building wealth.

"Capturing Millennials and Gen Z's interaction with accumulation, like super, would provide a real understanding of the changing landscape."

Mr Usher said an Indigenous Super Working Group, overseen by FNF, was working with industry to change practices that hinder Indigenous engagement and management of super, including enabling self-identification.

"Not only will this change help capture engagement more broadly, but it will also lead to better retirement outcomes for First Nations people," he said.

The Superannuation Across Generations survey was completed by a nationally representative split of Australians aged 18+ with a total sample size of 1,009. AustralianSuper manages more than $341 billion in members' retirement savings for more than 3.4m members from 478,000 businesses (as at 30 June 2024).