Scottish Equitable, operating under the Aegon brand, is set to pay thousands of pounds in compensation following prolonged access issues experienced by some pension savers. The controversy stems from a failed IT system upgrade initiated in August 2024, which left numerous customers locked out of their accounts and with incomplete retirement savings.
Despite 17 months having passed since the initial problem arose, many affected individuals are still awaiting full resolution. The Financial Ombudsman Service has intervened, ruling against Aegon in at least five workplace pension disputes within the last six months alone.
As a result, Aegon has been ordered to award £2,200 in compensation to five customers whose complaints were upheld. While the company claims that it located the previously “missing” funds by December 2025 and offered affected clients a loss assessment along with a £350 goodwill payment, the ongoing delays have caused significant distress.
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Pensions expert Tom McPhail commented, “The sooner these issues are resolved, the better—it reduces pain for all parties involved.”
In response, Aegon acknowledged that a minority of customers experienced extended disruptions following the August 2024 upgrade, primarily affecting older products no longer marketed. The company reassures that contributions have been securely held and will be credited once processing is completed, ensuring no savings have been lost.
A spokesperson for Aegon UK stated: “While most customers faced no or short-term issues, we sincerely regret the inconvenience caused to those affected. Dedicated support teams are actively assisting customers, and remediation efforts continue to prevent any disadvantage.”