I receive an Allocated Pension which I believe is going to be affected as of January 2015 as per recent Budget announcements, as well as a part pension from the government.

As I understand it, Allocated Pension balances are going to be taken into account as part of one's assets - which I thought already occurred by way of deeming?, and that any lump sum draw downs will have tax applied - this is the part I don't understand at all.

ANSWER:

The proposed changes affect income-tested pensioners only, and generally apply only in cases where a new income stream is commenced after January 1, 2015.

Based on the information supplied, you should not be affected unless you change providers, but you should certainly be talking to your adviser to make sure there is nothing you need to be doing to protect your position.