Prime Minister John Key has promised pensioners they will be better off if the Government raises the tax on goods and services to 15%.
Mr Key told a meeting of North Shore Grey Power on Friday that New Zealand Superannuation payments would rise in two ways if GST goes up from the current 12.5%.
Mr Key says pension payments would rise as personal tax rates were cut, because the payments are based on the after-tax average wage.
As well, he says the Government would immediately increase New Zealand Superannuation payments by just over 2% to match the rise in GST.
In combination the two changes mean the increase in super payments would be greater than the GST increase.
Mr Key also repeated his pledge that the Government would maintain super payments at 66% of the average wage for retired couples, with the age of eligibility staying at 65.
