The superannuation industry's peak lobby group has repeated its call for the federal government to raise the compulsory superannuation contribution guarantee to 12 per cent if Australia is to avoid a $695 billion retirement savings gap.

On the eve of the release of the government's third intergenerational report addressing issues about Australia's ageing population, the Investment and Financial Services Association (IFSA) said Australia faces a disaster for retirement savings unless the contribution guarantee is raised.

Independent research for IFSA conducted by actuaries Rice Warner and based on superannuation balances as at June 30, 2008, showed a retirement savings deficit of $695 billion between current funding and that needed to secure a comfortable standard of living in retirement.

IFSA chief executive John Brogden said the lobby group's third report on the superannuation savings gap showed the deficit had grown from $452 billion in 2004 to $695 billion, or $73,000 per person.