TAP pensions run at a trickle

Retirees are taking their time recognising the appeal of “term allocated pensions” (TAPs), a variation on the classic annuity in which the holder can direct the investment. TAPs also benefit from a concessional treatment under the assets test for social security purposes. Research group Plan for Life have found that TAPs attracted meagre investments of only $41 million in the December 2004 quarter, while mainstream allocated pensions have grown in popularity, notching up $2.7 billion of inflows in the December quarter, compared to $1.6 billion in the March quarter.