THE news of the recent troubles at Equitable Life came as a bombshell to Roy (not his real name), who lives in High Wycombe.

He is one of the Guaranteed Annuity Rate (GAR) policy holders left wondering what to do after the mutual life assurer closed its doors on new business last December.

It had to look for a buyer after losing a House of Lords case over guaranteed annuities.

"I did not think that an institution like Equitable would be able to get themselves into this position" said Roy.

"I believe a guarantee should be what it says a guarantee."

Roy, 55, took out a with-profits scheme with a guaranteed annuity of 14 per cent when he had his own company.

He had been paying into the scheme for more than 20 years and the fund is now worth around £90,000.

"I have ten years to run on the policy and the only communication I have had from Equitable was one visit to say I was one of the GAR policy holders and then one letter advising of the ten per cent penalty if I take the policy out now," he said.

"Since then I have had nothing and have had to rely on the financial press for more information.

"I can appreciate that from Equitable's point of view things can happen very quickly but with modern communications in 2001 I thought it would be possible for Equitable to keep policy holders up to date."

Roy is now considering what he should do for the best.

He could take out his policy and lose ten per cent on the value of the £90,000 policy, or alternatively take the proposed one-off payment for dropping GAR.

He will be taking advice from an independent financial adviser before making any decision.

"In the end I expect I will get a good pension, but certainly not as good as it should have been," he said.

A spokesman for Equitable Life said the company had published a number of open letters three in the last three weeks in the national press and was constantly updating its website www.equitable.co.uk.

There is also a helpline number for individual policy holders (0870) 906 1762