Superannuation should be used to fund retirees’ aged care to take pressure off the Commonwealth’s coffers, a review has found, as the government rules out imposing a new tax to prop up the sector.

Older people are expected to be wealthier in retirement than their predecessors, largely due to the superannuation system.

Superannuation should be drawn upon to cover health and aged care costs given the purpose of the scheme is to help Australians save for retirement, the government-commissioned Aged Care Task Force report found.

The proportion of people over 65 accessing the aged pension or other income support is expected to decline by 15 percentage points by the early 2060s.

Fewer people will receive the full pension rate due to increased superannuation and assets as well.

“Over the next 20 years, the number of people with superannuation balances at age 85 will grow considerably, with a greater proportion of people having significant funds available,” the report said.

A levy or tax to fund the aged care system was not recommended and has been ruled out by the government.

Prime Minister Anthony Albanese denied getting boomers to fund their retirement would punish people who worked harder as it would help make the system sustainable.

“This isn’t about any negative aspect, this is about making sure that we have a system that’s sustainable into the future,” he told ABC radio on Tuesday.

“We’ll consider the recommendations, we know that it is a difficult time for people when you have a loved one who requires care who’s unable to continue to live at home.”

The report also called for the Commonwealth to continue taking a significant role in funding aged care services.

A strong safety net for people with low means to meet costs was also recommended.

Catholic Health Australia called for the government to swiftly implement the report’s recommendations.

“With most aged care providers running at a loss, these sensible and responsible reforms are urgently needed so they can continue to invest and provide quality care for all Australians,” CEO Jason Kara said.

“The fairest way to deliver extra funding is to ask people who can afford it to contribute more for their accommodation and living expenses, costs they have covered over their adult lives.”

Ambitious action was required to tackle an ageing population and increased complexity over aged care needs, Council on the Ageing Australia said.

“The conversation about the long-term financial sustainability of aged care is a crucial one and one which we can’t afford to shy away from,” CEO Patricia Sparrow said.

The task force, chaired by minister Anika Wells, made 23 recommendations which are being considered by the government.

– AAP