Pensions Ombudsman highlights need for accuracy and clarity in standard communications

The dispute revolved around a complaint made by Mr S, suggesting that his provider told him that his regular annual statements did not include a final bonus, and that a final bonus would be added when his policy matured. However, when he came to take his benefits, Mr S was informed that the final bonus was already included in his annual statements.

Mr S asked to receive the final bonus he was expecting, amounting to approximately £40,000.

Mr S said that his interpretation – that any estimate provided did not include the final bonus and that this would be added at his chosen retirement date – was confirmed in calls with the provider. While the original communications suggested this, subsequent communications that provided estimates were clear that they included the final bonus.

The PO held that although the original documents could have been clearer, Mr S could not have reasonably relied on the ambiguity in light of the later communications, which were clear.

The PO also noted that Mr S would not have been entitled to a second final bonus even if the communications had been inaccurate, because he had not incurred financial loss. The decision highlights the importance of clarity when communicating with policyholders in order to avoid confusion.