A startling one in two working Australians are living from payday to payday while having unrealistic expectations about their living needs in retirement.

The revelations, contained in research by the National Australia Bank's wealth management arm MLC, come as the Federal Government confronts tax reform and potential changes to the superannuation system.

The survey of more than 2,000 Australians has found what it calls a "striking perception problem", with 48 per cent of those surveyed saying they will need at least $150,000 to "live comfortably" in retirement.

And the research reveals that an overwhelming majority does not believe a retirement nest egg of $1 million necessarily makes a person rich.

Underscoring the complexity of the superannuation system, the research shows Australians are confused about their social standing, with 66 per cent of the 2,000 surveyed thinking they are either middle or lower class.

MLC commissioned the three-part whitepaper to drive what it hopes will be a better informed debate on the future of the superannuation system, which is already a hot topic in an election year.

MLC chief executive Andrew Hagger said resolving the mixed perceptions of where Australians stood with their superannuation needed to be a national priority.

"With almost one in two Australians saying they are living 'pay cheque to pay cheque', we've got to ask ourselves if we've got the settings right to achieve that aim," Mr Hagger said.

"But in order to have a well informed national conversation about our super system, we need to understand how Australians identify themselves and discover their aspirations."

Mr Hagger agreed that banks and insurance companies such as MLC had a major stake in managing retirement incomes given the low cost and no commission offerings from industry superannuation groups.

"We all have a stake in this goal and NAB and MLC, as one of Australia's largest super and financial planning providers, is prepared to take a lead role in the debate and offer options to bring about enduring change," he said.

Super needs 'stable policy'

The research has found there is confusion between lifestyle expectations and standard of living, with 75 per cent of those surveyed saying a comfortable lifestyle meant "having enough money to do what I want, when I want".

With the average household income sitting at $77,676 annually, the research said there was a "clear disconnect between the definition of lifestyle and standards of living".

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"While we have changed our spending patterns, have we also changed our savings patterns? Is the current super system helping Australians achieve the standard of living they aspire to in retirement?" Mr Hagger said.

Mr Hagger said it was critical that the Federal Government undertake a rigorous examination of superannuation to build on reforms introduced by the Hawke/Keating government in the 1980s and '90s.

"Super is a long-term product that needs stable policy," Mr Hagger said.

"The stakes are high. When we get super right, it helps Australians in retirement and helps our economy. When we get it wrong, we risk our future prosperity.

"We do believe a key priority should be to establish a clear objective for our super system — one that all future reforms can be focussed on supporting."

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