Not upheld: service failure, delays in pension fund access, failure to meet assured payment date complaint against Phoenix Life Limited (trading as Standard Life)
Financial Ombudsman decision DRN-6352410 of 2026-06-08T00:00:00+00:00. service failure, delays in pension fund access, failure to meet assured payment date complaint against Phoenix Life Limited (trading as Standard Life). Outcome: Not upheld.
Decision detail
| Reference | DRN-6352410 |
|---|---|
| Decision date | 2026-06-08T00:00:00+00:00 |
| Firm | Phoenix Life Limited (trading as Standard Life) |
| Product | Pension |
| Claim type | service failure, delays in pension fund access, failure to meet assured payment date |
| Outcome | Not upheld |
| Remedy | Phoenix Life's offer of £350 compensation for inconvenience and distress is deemed fair and reasonable. No additional compensation for consequential losses (£220 builder delay payment and £650 additional rent) is required. |
Summary
Mr B complained to Phoenix Life about delays in accessing £20,000 from his pension for home renovations, claiming he incurred £870 in consequential losses (£220 builder delay payment and £650 additional rent) because funds were not received by 26 December 2025 as he believed was assured. Phoenix Life acknowledged delays but offered only £350 compensation, arguing Mr B had not communicated the specific financial consequences of the delay. The ombudsman found that while Phoenix Life's adviser mentioned 26 December 2025, this was not a fixed promise but approximate guidance subject to change, and the specific financial losses were not reasonably foreseeable because Mr B never communicated them. However, the one-day delay beyond the assured date of 30 December 2025 and partial payment issue caused reasonably foreseeable distress, making Phoenix Life's £350 offer fair and reasonable. The complaint was not upheld.
The Ombudsman's reasoning
The ombudsman found that while Phoenix Life's adviser mentioned 26 December 2025, this was not a fixed promise but rather approximate guidance subject to change. The call handlers consistently qualified timescales with 'subject to change' caveats. Critically, the specific financial consequences Mr B claimed (builder delays and additional rent) were not reasonably foreseeable to Phoenix Life because Mr B never communicated the particular financial impact of missing a specific date. Although Phoenix Life did assure Mr B on 29 December 2025 that payment would be made on 30 December 2025, the one-day delay beyond this assured date, combined with the partial payment issue, caused distress and inconvenience that was reasonably foreseeable. The ombudsman considered this warranted compensation within the £300-£750 range for considerable distress and significant inconvenience, making Phoenix Life's offer of £350 fair and reasonable.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Phoenix Life Limited (trading as Standard Life), all decisions | 7 | 14% |
| Pension, all decisions | 15,409 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website