The OECD said pensions should also be means tested to help stop public funds from running out.
“Ageing is increasing pension costs and trust funds will run out in the coming years,” it said.
“Limiting benefits for wealthy households, partially indexing the retirement age to life expectancy and indexing benefits to [inflation] would help fund social security.”
The call for higher taxes came as the OECD warned that a failure to tackle the US’s mammoth debt pile “could undermine the sustainability of current spending programmes, including healthcare and social security”.
The Congressional Budget Office expects the US government to borrow $1.9 trillion (£1.5 trillion) this year. This deficit between tax income and spending is forecast to rise to $2.8 trillion per year in a decade’s time.
The US Treasury is able to borrow more than other countries because of the country’s enormous economy…
