The average retiree lives 17 years and their savings are expected to run out after only five, a new survey shows, proving yet again how most retirees are unprepared for life post-work, regardless of regulatory reforms.

Analysis of the 2007 HILDA survey (Household, Income and Labour Dynamics in Australia) by Professor Roger Wilkins from the Melbourne Institute's Faculty of Business and Economics, part of The University of Melbourne, shows that the projected life expectancy at retirement for a 55-59 year old single male is 17 years but their savings will run out just one-third the way through.

For single women in this age range, the situation is even more dire with median projected savings supporting only two years of the expected 21 years to be spent in retirement, said Professor Wilkins.

The inadequate level of retirement savings is so acute that Professor Wilkins said raising SG to 12 per cent may not be a sufficient policy response and it may be necessary to further raise the retirement age.

"Our analysis suggests that the most effective way to bridge the gap between likely future retirement income and desired minimum retirement income is for people to retire later. Later retirement both increases savings at retirement and reduces the number of years spent in retirement," said Professor Wilkins.

The analysis, conducted on data assembled before the GFC dramatically reduced superannuation balances, found partnered retirees to be in much stronger financial positions than single retirees but even this was not sufficient to overcome their savings shortfall.