Aviva Annuity Policy · CAS-30727-Y8B4

CAS-30727-Y8B4

Ombudsman’s Determination Applicant Mr T

Scheme Aviva Annuity Policy (the Annuity)

Respondents Aviva Life and Pensions UK Limited (Aviva)

Outcome

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Adjudicator’s Opinion

• Mr T received the maximum lump sum available from his personal pension in 2010 and his remaining fund value was then used to secure a lifetime annuity.

• Once an annuity has been purchased it is irreversible, and the Annuity cannot be encashed.

• In 2016, the Government did consider allowing pensioners to sell their annuities in exchange for a lump sum but following a consultation, the Government decided against this.

• The Adjudicator was satisfied that Mr T was receiving his annuity in accordance with his instructions to Aviva. He will continue to receive his annual annuity for life, but no further lump sum is due to him.

• When Mr T chose to take the Annuity, Aviva explained it was up to him to seek advice from a financial adviser if he did not understand the options available.

• He was under the impression he could withdraw the remaining money at any time.

2 CAS-30727-Y8B4 • He was never given any advice or direction as to what he was signing when setting up the Annuity.

• He wanted to cancel the plan, as he is a pensioner and is in desperate need of the money.

Ombudsman’s decision

I do not uphold Mr T’s complaint.

Anthony Arter

Pensions Ombudsman 29 November 2019

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