Peters begins the Grey Power shuffle

Winston Peters' first election-year pitch to senior citizens sparked a fight with the Government yesterday which claimed he was misleading them over superannuation.

Mr Peters told a Grey Power audience in Porirua his party would unveil plans in April to lift superannuation rates, saying the current scheme was designed to rip them off.

"In January 2000, the newly elected Labour Government changed the formula for establishing the rate of superannuation from a link to the consumer price index, or inflation, to a link in the net average wage."

Five years down the track the formula meant the average single person was now almost $20 a week out of pocket.

"If you are a married couple on the guaranteed retirement income you are over $30 a week worse off."

He said the Government had denied couples a further $5 a week in the past 18 months by allowing the superannuation rate to fall below 65 per cent of the average wage for several quarters.

"Five dollars a week may not seem much to the Prime Minister ... but for a senior citizen it could be the difference between a solid meal or a trip to the doctor."

Social Development Minister Steve Maharey said Mr Peters was "completely incorrect".

Superannuation was inflation-adjusted, then checked against the average wage. If the rate was lower than 65 per cent of the average wage it was readjusted, Mr Maharey said.

The 2000 change meant a married couple was now $21.82 a week better off.

But Mr Peters said superannuation was inflation-adjusted only once a year and "therefore you get a lag".

Asked if New Zealand First would inflation-adjust superannuation every quarter he said: "Well for a start I wouldn't have it at 65 [per cent] ... I'd have it much higher.

"If you were paying 68 per cent of the average wage there would be no argument from these people."