About 40% of people earning between $30,000 and $50,000 would benefit from talking up the Commonwealth’s proposed $3 for $2 co-contribution super arrangements if implemented, according to the Investment and Financial Services Association (IFSA).

CEO Richard Gilbert says strategic research carried out for IFSA, the peak body supporting Australia’s funds management and life insurance industries, has suggested the initiative would “foster a savings culture – with benefits beyond better retirement incomes”.

“The extended co-contributions will allow Australians to tailor their retirement savings more effectively to suit their own needs and circumstances,” Mr Gilbert said. “This is particularly helpful for people with broken work patterns – particularly women – and those who feel that their compulsory savings alone will not fund an adequate retirement income.”

IFSA says the data collected by Eureka Strategic Research shows that the co-contribution scheme will expand the benefits of the scheme to 42% of eligible people, rather than 29% under the previous scheme.

“IFSA has long advocated effective incentives for voluntary contributions to superannuation,” Mr Gilbert said. “This research shows that the Government’s increase and extension of the co-contributions scheme is likely to result in a positive response from middle income Australians and be effective in increasing retirement savings in these demographics.”