Royal London Retirement Annuity Plan (PO-13315)

Ombudsman’s Determination

 Complaint Summary

Mr S has complained that Royal London has incorrectly interpreted the terms of the Policy in respect of the benefit payable to him. Specifically, Mr S says the Policy clearly states that, from age 60, it would pay an annuity per year of £2,127, “exclusive of profits”. He takes this wording to mean that profits would be added to, and therefore increase, the basic annuity. He disagrees with Royal London’s interpretation that the Policy provides him with a fund which can be used to purchase a pension either through Royal London or on the open market and the basic annuity is a promise that he will not receive less than the £2,127 per year guaranteed under the Policy.

Mr S has also complained that information supplied to him has not been clear and Royal London has failed to properly explain the rationale for how it proposes to pay his benefits. He needs to make decisions about his retirement; he has no regular income and is still paying pension contribtions to the Policy.

Summary of the Ombudsman’s Determination and reasons

The complaint should not be upheld because:

• Royal London has correctly interpreted the terms of Mr S’ Policy; and
• Although information provided to Mr S has been deficient, this is not the reason why he has been unable to access his retirement benefits