When I began, I used pg_dump with the default plain format. I was unenlightened.
Research revealed to me time and file size improvements with pg_
I assume you need backup, not a major upgrade of database.
For backup of large databases you should setup continuous archiving instead of pg_dump.
Set up WAL archiving.
Make your base backups for example every day by using
psql template1 -c "select pg_start_backup('`date +%F-%T``')"
rsync -a --delete /var/lib/pgsql/data/ /var/backups/pgsql/base/
psql template1 -c "select pg_stop_backup()"`
A restore would be as simple as restoring database and WAL logs not older than pg_start_backup time from backup location and starting Postgres. And it will be much faster.