(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
Second, an immediate annuity can be purchased direct from an
insurance company or through an existing exempt approved scheme.
These immediate annuities are usually referred to as
”Hancock” annuities and are briefly described in
PSI1.1.17. The purchase of
the annuity provides security for the employee but the cost of
paying the single premium can impose a heavy financial burden on
the employer.
