The country’s $4.2 trillion retirement savings sector must urgently prioritise efforts to boost service standards for retirees and older Australians or risk stranding millions with a poorer quality of life in retirement, warn industry experts.

It comes as new research indicates Australians feel more uncertain about their retirement than ever before. The CoreData/Conexus Financial report revealed fewer than one third of people over 45 feel financially ready for retirement and a rise in the number planning to exit the super system.

There are 1.7 million people expecting to retire in the next 10 years, figures from the ABS show, but report author Andrew Inwood said that the trust in major super funds was falling and meant retirees were taking riskier bets.

Andrew Howard is the head of strategy at Insignia Financial, the ASX-listed owner of the 150-year-old MLC brand and operator of the largest retail super fund. He argued that major funds must shift their priorities from accumulating wealth to helping members draw down on their wealth.

“Decisions need to be made about our priorities – we have known for a long time that there was going to be a wave of retirees and retirements in Australia, so it must come up the priority list,” he said.