Workers should not be forced to lock away a rising portion of their wage in superannuation, according to a new report.

Axing the planned increase to 12 per cent in the rate of compulsory super would save federal coffers almost $2 billion a year – money that would be better spent boosting rent assistance for vulnerable retirees, mainly single women, the Grattan Institute report says.

The report argues the current 9.5 per cent rate is adequate to fund a decent retirement income for the typical worker. Credit:Glenn Hunt

Amid persistent low wages growth, the report argues the current 9.5 per cent rate is adequate to fund a decent retirement income for the typical worker.

"There is no strong case to raise the superannuation guarantee to 12 per cent, as currently legislated," the report concludes.