Labor has pledged to push super up to 12 per cent.

Labor’s shadow treasurer Chris Bowen says there will be no further delays in increasing compulsory superannuation payments to 12 per cent if Labor comes to office in the May election.

Bowen claims that delays by the Liberal–National government to implementing the legislated increase from 9.5 to 12 per cent meant people retiring today have nearly $100,000 less in super than if the original 1993 timetable had been implemented.

“Let me make it clear that the Labor Party does not regard a 9.5 per cent super guarantee as providing adequacy. We will brook no further delay to the legislated timetable,” he told The Australian Financial Review’s Banking and Wealth Summit.

Labor’s commitment came after modelling by Treasury showed the age pension is on track to cost the nation less than previously predicted – an indication that Australians are relying less on the pension in their retirement.

The Australian reported that Treasury retirement-income modelling found the share of GDP spent on the age pension will fall to 2.5 per cent by 2038 – “significantly lower” than previous estimates.

Association of Superannuation Funds of Australia chief executive Dr Martin Fahy told The New Daily the Treasury report shows that the burden on the aged pension continues to decline and it “creates a very strong case for saying that superannuation is working, and that by going to 12 per cent as is legislated, it will continue to work”.