A review is being conducted into the retirement system amid the government’s insistence on increasing the compulsory superannuation contribution.

The Productivity Commission recommended the appointment of an independent review of retirement income which consists of three key pillars: the age pension, compulsory superannuation and voluntary savings including homeownership.

The compulsory superannuation payment is expected to rise from 9.5 per cent to 10% in 2021 and to 12% by 2025.

Productivity Commission chairman Michael Brennan tells Ross Greenwood the review needs to take place before any increases are made to superannuation.

“It’s not a magic pudding, it comes out of somewhere and it generally means less money for people during their working lives.”

Mr Brennan says they do not have a view on the increase of super contributions.

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