The Morrison government has been warned that older Australians' chance for a "dignified life" will be undermined unless its review of retirement incomes take on some of the nation's most politically poisonous policies, such as including the family home in the pension assets test.

The Actuaries Institute, in a report on Wednesday, said everything from the age at which people could access their superannuation to the creation of a universal concession card for all retirees had to be considered now, before the nation's finances deteriorated due to demographic change.

The government has been warned its retirement income review needs to canvass a string of politically poisonous proposals. Credit:Michele Mossop

Treasurer Josh Frydenberg is expected to release the terms of reference for the review, which was recommended by the Productivity Commission as part of its investigation of the superannuation sector, by year's end.

The commission made clear it wants a broad inquiry into the entire retirement income system that would look at how various elements, such as superannuation and the age pension, were affecting national savings now and into the future. It would be the first inquiry into the system since the early 1990s.