Lifting mandatory superannuation contributions to 12 per cent will slow wage growth and strip $20 billion a year out of wages, a new report shows.
However, former prime minister Paul Keating attacked the report as "wilful misrepresentation" of the wages system, which ignored the fact that wage growth had been "frozen" for five years.
The Grattan Institute says both parties plan to lift the compulsory superannuation contribution from 9.5 per cent to 12 per cent by 2026.
But report author Brendan Coates warns the money will come out of workers' wages, not employers' profits.
"Both sides of politics are committed to wage cuts that workers can't afford, in exchange for extra super that won't help them much," Mr Coates said on Friday.
"The overwhelming evidence is that higher super contributions are paid for by lower wages for workers.
"The Henry Tax Review and others have shown that this is exactly what happens. The Parliamentary Budget Office came to the same conclusion just weeks ago."
Mr Coates said by the time it's fully implemented in 2025/26, a 12 per cent super guarantee will strip up to $20 billion from workers' wages each year -almost one per cent of gross domestic product.
Mr Coates said super funds were pushing the major parties to lift the contribution threshold, but he warned against it.
"More super at retirement is only useful if it actually translates to higher incomes in retirement," he said.
"For most low and middle-income earners, it won't help much."
Mr Keating, whose Labor government introduced compulsory superannuation in 1992, said in a statement to AAP the report was "dodgy analysis".
"Despite the fact that wages growth has been frozen, labour productivity has actually continued to expand - by roughly 10 per cent over the past five years," he said.
"But none of that labour productivity has been paid to wages - it has all been retained in the balance sheets of companies.
"This is why the corporate sector can easily afford to pay an extra 2.5 per cent superannuation under an expanded superannuation guarantee charge."
He said if the extra 2.5 per cent was not forthcoming Australian workers would get "nothing".
Shadow treasurer Chris Bowen last month said Labor was committed to the 12 per cent guarantee.
