Power price rises, the projected GST increase, and food price inflation are all set to buffet older New Zealanders in 2010, Age Concern says.

Age Concern New Zealand president Liz Baxendine has warned the Prime Minister of a 'perfect storm' of price rises in an open letter.

The nation-wide service organisation for older people opposes the GST rate increase to 15 percent.

"Older people are predominantly low-income earners who would be particularly badly affected by GST increases," Liz Baxendine says.

"There's potential for any GST increase to combine with power price rises and inflation to produce a perfect storm that would greatly increase the proportion of older New Zealanders living in financial hardship."

Age Concern is pointing to danger signs:

Genesis and Mighty River have joined Contact in announcing price increases and Meridian's price freeze ends this year. The increases come despite widespread disbelief (including by the Minister of Energy) that they're justified.

Food prices have increased 12 percent in the past two years, far outstripping the overall CPI, and therefore the annual Superannuation cost-of-living increases. Economists expect further demand-driven increases this year as international markets recover.

"If Government decides to increase GST, Government's commitment to 'upfront increases' in benefits and pensions would need to be fully realized," Age Concern told the Prime Minister.

Superannuitants are also waiting anxiously for a cost-of-living increase, expected in April.

"It's always too little, too late," Liz Baxendine says. "Cost-of-living adjustments are paid up to a year behind price increases so any extra has already been spent, and then we're faced with the next round of price rises.

Age Concern is calling for Super to be increased to the level already allowed for under existing legislation. This would mean an extra $15-$20 per week.

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