Aviva Personal Pension Plan (PO-7401)

Ombudsman’s Determination

Outcome

Mr N’s complaint against Aviva is partly upheld. To put matters right, in 28 days from the date of this determination, Aviva should pay Mr N £1,990.24 which includes:

• £1,676.69, representing loss of tax free cash;
• £13.55 which is the difference between £277.42 (the original calculated loss) and £290.97 (the correct calculated loss); and
• £300 being the remaining amount to be paid for distress and inconvenience.

My reasons for reaching this decision are explained in more detail below.

Complaint summary

Mr N has complained that he has lost out because he requested to be contracted out of the State Second Pension (S2P), but Aviva failed to act upon his instructions. This meant he lost out on flexibility and will need to wait until he reaches state pension age (SPA) before he will start receiving the S2P.