Allocated Pensions

For all of you who are close to retirement and are in a situation similar to the one I was in, II would strongly urge you all to have a very close look at allocated/term/annuity pensions before you invest in one of these. When I went to collect my lump sum payment I found that all the papers were there ready for me to sign for an allocated pension, which I refused thanks to some advice given to me by my (then) Company Secretary. I had about 70,000 dollars to invest after paying off my house.
First of all, my wife is 23 years younger than I so I had to look very closely at the options available for me. An 'allocated pension' would have provided me with a supplement to my pension of about 90 dollars per week. This would have lasted for some 16 years, after which the 'supplement' would run out. After that - nothing! I also hasten to add that the money is not guaranteed and is susceptible to world financial shifts.
I chose to put my money into a Term Deposit with the dividend being transferred to a 'home' account each month. This money I use for home and car maintenance. The balance left over each year I put on to the investment. This has resulted in an average of about 80 dollars per week. I have done this for the past 10 years and seen my investment grow to about 80,000 dollars. Should I have invested in an allocated pension I would have had about 6 years to run after which there would be nothing left for my wife whatsoever. I would have been probably about 8 and a half thousand dollars better off with the allocated pension over 16 years but the big difference is instead of having nothing I still have the original investment (70,000 dollars plus) and the dividends continuing not only until my death but also until my wife's death when the money will be left to an appropriate relative rather than the government.
These figures may be a little 'out' over the years but there is no escaping the fact that once the government have your money then it is GONE! I post this as I have seen in recent months a couple of cars in my home town with placards on them saying "Beware Financial Planners - Invested my money in a Pension Scheme and lost the lot"!
Allocated Pensions may suit some people who have much more money to invest but to smaller investors like myself I would urge the strongest possible investigation into this before parting with your hard earned superannuation. There are moves afoot to ban all lump-sum payouts which the Unions are fighting vigorously against. Ask your Union secretary to give you the figures regarding the samples I have given you i.e. Allocated Pension v Term Deposit. I would again strongly advise against financial planners advice (unless you know them personally) as they receive commissions (so I am given to understand) from the Government for every Allocated Pension they sign up.
There may have been some changes to these pensions since I retired but I know of many who have taken these up and wish they hadn't after hearing that I still have all my original investment.
Have a nice day everyone and hope this advice is of some help to someone.

WOW.
Thank you, you did help at least one person.

Thank you so much. I received your pm and so glad my post was helpful.
I was afraid nobody had read it as there are no mediums to post messages of this nature.
Again, so glad I have been of assistance.