Not upheld: failure to send annual statements; administrative error in address update complaint against Aviva Life & Pensions UK Limited

Decision detail

Summary

Mr R complained that Aviva failed to send him annual pension statements for eight years after he updated his address in 2016 due to a technical error in Aviva's system. The error was not identified until 2024 when Aviva contacted Mr R and sent all missed statements. Aviva offered £300 compensation for distress and inconvenience. Mr R argued he could have made different pension decisions had he received the statements, including potentially withdrawing funds at age 55. The ombudsman upheld Aviva's offer as fair, finding no evidence Mr R would have made different decisions, as he could have contacted Aviva at any time during the eight-year period if he had intended to take action regarding his pension.

The Ombudsman's reasoning

The ombudsman accepted that Aviva failed to send statements for eight years but found the key issue was whether this caused Mr R actual financial loss or material distress. The ombudsman reasoned that if Mr R had intended to make important pension decisions (such as taking benefits at age 55), he would likely have noticed the missing statements and contacted Aviva to request information. Since Mr R did not contact Aviva during the eight-year period, the ombudsman concluded it was speculative whether he would have made different decisions had he received statements. No evidence demonstrated Mr R would have obviously done something different or suffered financial loss.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website