The specialist retirement funding provider completed its submission to the Retirement Income Review in response to the government's consultation paper released late last year.
The report said the purpose of the review is to ascertain the degree to which retirees are supported by superannuation, the age pension and other savings including home equity.
"However, as evident from a recent survey, Australia's retirees do not feel fully supported by the Australia's retirement funding system," Household Capital said.
"The three pillars of retirement funding have not, to date, adequately supported all Australians for several reasons."
The report points to the fact that Australians are living longer as one factor, saying this fact is often communicated with "rhetoric" around it being an economic burden or threat.
"Australia's retirement system was not designed to support retirees for 20-30 years of life beyond work," the report said.
"Superannuation came in too late for most baby boomers; accordingly, the median account is $200,000 at retirement (less for women), which provides income for around 10-15 years."
The report also claims the age pension is "inadequate" as a sole source of retirement funding and said home equity has not been appropriately and effectively made available to improve retirement funding.
Household Capital chief executive Josh Funder said: "By helping retirees to better access and responsibly use home equity for retirement funding, several important areas of social and economic policy can be addressed."
"Retirees are a large group with significant inaccessible wealth in home equity and major unmet needs in consumption for wellbeing."
"By unlocking home equity to improve retirement funding, we can enhance both the quality of life in retirement and economic activity."
Household Capital made several recommendations to the Retirement Income Review including incentivising older Australians to use their home equity to improve retirement funding, requiring all superannuation funds to offer a comprehensive retirement income package to members and not exempting reverse mortgage brokers from best interest tests.