By PNA / Yonhap and U.S. News Agency / Asian

South Korea needs to hike the starting age of pension recipients as part of efforts to sustain the nation’s pension system feared to be hit hard by its fast-aging population, a report said Tuesday.

The report by the Organization for Economic Cooperation and Development (OECD) advised the government here to raise its minimum pension-recipient age from the current 60 to 65. The report was announced at a conference held in Seoul.

The policy recommendation comes amid concerns that the nation’s public pension system might not be sustainable due to a spike in the number of recipients due to the fast-aging population. Prolonged low birthrates could also lead to a decline in workers to support senior citizens.

The report also said South Korea needs to improve its overall retirement system in the corporate sector where workers mostly retire before 60. It advised the retirement system be scrapped in the long term.

As for the nation’s tax system, the report advised the government to lower corporate taxes aimed at bolstering business investment. It also supports cutting income taxes.

The advice comes as the nation debates whether it is right to reduce corporate and income taxes. Supporters say that the move will boost corporate investment and eventually contribute to job creation and economic recovery. Critics say that the tax reduction is only intended to help rich people.

With regard to the controversial college tuition issue, the report called for more government support for students to pay for their education, citing South Korea’s relatively expensive college tuitions along with fewer state scholarships and student loans.

Recently, students of major universities here in Korea took to the streets to voice their protest against soaring tuition fees.

Some lawmakers argue that tuitions should be lowered significantly but policymakers say that the reduction requires massive government fiscal support, which it worries could hurt the nation’s fiscal soundness.