The new name for Allocated Pensions. What is an Allocated Pension? The old name for an Account Based Pension. Either way it is the money that is regularly paid to you from your superannuation when you retire. Once you retire you turn on the ‘tap’ in your super fund and you withdraw what you like, subject to a minimum, until it runs out. For those over 60 these pensions have been tax free since July 2007. The Age Pension is completely different but everyone seems to use the word ‘pension’ to describe both.