Former Liberal Premier Jeff Kennett has endorsed mandatory retirement contributions rising to 12% to cope with Australia’s demographic “time bomb” as new research shows that higher pension payments are correlated with stronger wage growth.

A study from the Australia Institute suggests there is no empirical evidence showing that changes in the super guarantee would result in lower wages following a report from the McKell Institute in September.

“There is no visible correlation between increases in the superannuation guarantee rate and either lower or slower-growing wages… To the contrary, average wage growth has tended to be slightly stronger in years when the SG rate was increased, than in years when it was frozen, and wages were more likely to accelerate than decelerate in those years,” the report says.

The super guarantee currently amounts to 9.5% of salaries, but is due to increase to 12% by 2025 – a change opposed by a handful of backbenchers and identified as detrimental to middle-income earners by the Grattan Institute.

The Australia Institute report commissioned by Industry Super Australia comes after the ageing population was described by Treasurer Josh Frydenberg as an “economic time bomb.”

“Our population is ageing and this will place new demands on our health, aged care and pension systems,” the Treasurer said in a speech to the Committee for Economic Development of Australia on Tuesday.