Treasurer Joe Hockey has raised the prospect of allowing first home buyers to dip into their superannuation to buy a property, saying Australians need to think very differently about the role of super in future as the population ages.

But the idea has been slammed by Labor, the Grattan Institute, and the superannuation industry, who warn it would make homes less affordable for younger people and contribute to the transfer of wealth from younger to older Australians.

Treasurer says Australia needs to think about the changing role of super: Joe Hockey. Credit:Andrew Meares

The Abbott government's Intergenerational Report, which was released on Thursday, warned about the huge demographic changes that are likely to occur over the next four decades and the pressures they could put on government services.

It showed life expectancy rates are expected to jump dramatically, with average male life expectancy rising to 95.1 years by 2055, and female rates hitting 96.6 years.