Prudential Retirement Account (PO-28558)

Ombudsman’s Determination

Outcome

Mr Y’s complaint against Prudential is partly upheld. To put matters right Prudential shall pay Mr Y:

· three months’ simple interest at the agreed rate of 8% per annum on the £100,000 tax-free cash lump sum not taken;

· the £238 gift aid tax with simple interest at 8% per annum from 31 October 2019 until date of settlement; and

· the additional £5,000 fee which he paid to his IFA for arranging the subsequent transfer to Aviva.

Furthermore, provided that Mr Y reasonably demonstrates to Prudential that he has taken the additional £46,350 in pension payments from his pension fund with Aviva, which he said he would have taken in the 2018/19 tax year, then Prudential shall award him the loss of the unused tax allowance/threshold for the 2018/19 tax year of £11,641. Prudential’s payment under this head of loss remains valid until 5 April 2021.

Complaint summary

Mr Y has complained that:

· Prudential failed to carry out a transfer of his deferred pension rights available from a final salary occupational pension scheme administered by Equiniti into a Prudential Retirement Account in a timely manner;

· the delay resulted in a significantly lower transfer value being available, for which he would like to be suitably compensated;

· Prudential did not seek an update from Equiniti on how the transfer was progressing; and

· he has suffered considerable distress and inconvenience dealing with this matter and by Prudential’s subsequent failure to resolve his complaint satisfactorily.