Not upheld: pension fund performance complaint, service delays, poor communication, and administrative errors complaint against Phoenix Life Limited

Decision detail

Summary

Mrs B complained to the FOS about Phoenix Life's pension fund underperformance, poor communication, and delays in processing her pension withdrawal. She had made contributions only until September 1998 and expected greater growth than achieved. Phoenix Life acknowledged a delay in correcting her date of birth on file and offered £100 compensation. The ombudsman found that fund performance is not the provider's responsibility as it is influenced by market conditions, that most service delays were attributable to Mrs B's own nine-month gap in following up, and that the £100 compensation was appropriate. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman concluded that pension fund performance is not the responsibility of the provider as it is influenced by market conditions beyond their control, and the FCA does not hold pension providers responsible for poor performance. Regarding service delays, while Phoenix Life acknowledged taking too long to correct the date of birth, most of the overall delay was attributable to Mrs B not following up between November 2024 and July 2025. The ombudsman found it more likely than not that the retirement options packs were received, as Mrs B called to encash her policy shortly after the first pack was sent, and the final response letter referenced enclosures which would likely have prompted a challenge if not received. Without phone records to evidence calls made during the gap period, it was not reasonable to conclude that calls were made but not logged by Phoenix Life. The £100 compensation offered was in line with FOS guidelines for similar situations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website