Credence Independent Advisors: A look in to the pension changes

September 3, 2014 – These pension changes are generally all positive and the biggest for more than 100 years. Some of the changes are discussed here.

In order to ensure that all defined contribution schemes are able to offer greater flexibility to their members a permissive statutory override shall be introduced. The benefit of permissive statutory override is that it allows schemes to ignore their scheme rules and follow the tax rules instead; in order to make payments flexibly or to provide a drawdown facility.

According to the government mandating these schemes provide flexible payments, which would be disproportionate. Even though some schemes would like to offer flexibility to their members but due to the legal and administrative costs involved, they would prefer not to amend their schemes. The government under these situations would prefer that the schemes were in a position to provide flexibility without amending their rules.

On the other hand, if the schemes do not offer flexible access, the individuals would be able to transfer between defined contributions schemes up to the point of retirement.

It is also expected that the government would make various changes to the tax laws, in order to allow more freedom to providers to create new and innovative products, which meet the needs of the consumers more closely. These include; allowing lump sums to be taken from lifetime annuities, allowing payments from guaranteed annuities to beneficiaries as a lump sum, where they are under £30,000, removing the 10-year guarantee period for guaranteed annuities and decreasing lifetime annuities.

The real intention behind the new tax rules is to provide people with a greater access to their retirement savings. However, they also ensure that individuals do not use these new flexibilities to avoid tax on their current earnings by diverting their salary into their pension with tax relief and then immediately withdrawing 25 percent tax-free.

Those who choose to draw down more than their tax-free lump sum from a defined contribution pension will be able to benefit from further tax-relieved pension saving, and make further tax-free contributions to a defined contribution pension of up to £10,000 a year.

Under the current rules, those who are currently in ‘flexible drawdown’ are not able to make further pension contributions, having an annual allowance of £0. However, from April 2015 they will be subject to a new annual allowance limit of £10,000. This would allow individuals accessing a defined contribution pension worth more than £10,000 to contribute up to £10,000 a year with tax relief to a defined contribution pension, after their first flexible withdrawal.

Without being subject to a £10,000 annual allowance on subsequent contribution, individuals can make withdrawals from three small pension pots and unlimited small occupational pots worth less than £10,000.

Other proposed changes under the new tax rules include the increasing of minimum age at which people can access their private pension from 55 to 57 in 2028 for all pension schemes. However, this change will not be applicable to those in the public sector; which includes police, armed services and firefighters.

According to the government, when the new system is established in 2015; the 55 percent tax charge on pension savings in a drawdown account at death will be too high. As a result, in this year’s autumn statement; the government has intentions to announce the changes.

The government will introduce two new safeguards to protect individuals and pension schemes, but will continue allowing transfers from private sector defined benefit to defined contribution schemes, apart from pensions that are already in payment.

Prior to accepting a transfer; an individual would be required to take advice from a professional advisor, authorized by FCA and independent from the defined benefit scheme.

Currently, if the interests of the members of the pension fund trustee or the scheme are prejudiced by making the payments within the usual period, than they can ask the regulators for a longer time to make transfer payments. However, now there will be new rules for delaying the transfer payments for trustees and the scheme funding levels when deciding on transfer levels will also be taken in to consideration.

For those defined members who wish to access their savings flexible, the government has intentions to consult on removing the requirement to transfer first to defined contribution schemes.

Since, there is no money involved in transfers from unfunded public service defined benefit schemes; therefore, the government intends to consult on removing it. However, transfers from funded defined benefit to defined contribution schemes will be allowed, and safeguards similar to those in the private sector will be introduced where appropriate.

Under the trivial communication and small-pot rules, individuals are allowed to take up to £30,000 of total pension savings as a lump sum, or a £10,000 small pot as a lump sum regardless of total pension wealth. The age at which an individual can make use of these rules will also be lowered from 60 to 55.

8 Foods To Fight Stress

Under stress – whether it is work, study or a relation, dietary habits change substantially. Some people lose their hunger when under stress whilst others tend to overeat – most often fatty, sugary and junk foods. Always blaming stress for making poor food choices is not the right approach. In fact, making the right food choices will help stabilize blood sugar levels and your emotional response. Good nutrition helps in balancing your stress hormones, relieving stress and boosting your mood.

Here are 8 foods to reach out for when you have just about had enough which will calm and soothe you.

OATS: Being a complex carbohydrate, oatmeal causes your brain to produce serotonin, a feel-good chemical. Serotonin calms you down and makes you feel good. Oats are also rich in beta-glucan, which help in lowering blood cholesterol level and also help in weight management.

NUTS: Nuts help replenish Vitamin B stores that are depleted in stress. The B vitamins help us manage the fight or flight response in stress. The potassium in nuts also helps keep the blood pressure in check thus reducing the strain on the heart.

SALMON: Eating salmon on a regular basis has been linked to reducing the risk of getting depression because of the omega 3 fatty acids present in it. It can reduce stress and anxiety in individuals when eaten even twice a week.

LEAFY GREENS: Leafy greens contain folate that produces dopamine in your brain. Dopamine is involved in the emotional regulation in the brain thus keeping you happy. Besides folate, magnesium in the leafy greens also helps in keeping us calm and good.

SEEDS: Seeds like the sunflower seeds, flax seeds, watermelon seeds, etc have stress-reducing benefits. These tiny powerhouses are rich in magnesium that promotes a healthy nervous system. They also are full of tryptophan which is an amino acid that helps in the production of serotonin that helps you feel calm.

AVOCADOS: Avocados are rich in the stress relieving B vitamins, Vitamin C and folate. They also contain potassium that naturally helps in lowering blood pressure. This makes them one of the best foods for relieving stress and anxiety.

MILK: Milk contains tryptophan, an essential amino acid which is a precursor for the neurotransmitter Serotonin. Serotonin is a “feel good” chemical known to promote relaxation and calm in a person. And, milk taken with another carbohydrate will help in the absorption of tryptophan.

LENTILS & BEANS: Being stressed can be detrimental to your nerve health. Lentils and beans are rich in magnesium, folate and potassium which help calm the nerves, reduce anxiety and promote brain health.

Researchers have found that eating a diet of processed, sugary and fatty foods increases the chances of stress and depression. So, as a general rule steer away from these foods if you are looking to improve your mood. Eating a healthy diet not only helps in maintaining a healthy body weight but also helps in keeping the moods in order. Café Nutrition with their weight loss clinic in Mumbai offer weight loss in Mumbai and over the world through their online and offline nutrition services.

Herbal Thyroid Supplements To Prevent Goitre Problem Naturally

Thyroid gland releases T3 and T4 which control metabolic rate and blood pressure. Imbalance in T3 and T4 causes disorder in thyroid gland like goiter, hypothyroidism, hyperthyroidism, thyroid cancer, thyroid nodules and thyroiditis. When thyroid gland is underactive, hypothyroidism happens in which metabolic rate decreases. This happens because of the dead cells in the glands left after damage and this slows down many processes in body. Weakness is also common during this time. During hyperthyroid, overactive gland produces relatively more thyroid than normal. This increases both metabolism and blood pressure which badly affects the heart functions. Goiter is abnormal enlargement of gland because of insufficient iodine in blood. Thyroid nodules are lumps formed at the end of the gland which cause discomfort in neck. Thyroiditis happens due to inflammation in the thyroid gland and this may cause hypothyroidism. All these problems cause disorders and cause either sudden increase or decrease in body weight.

Thyronil capsules are the most effective herbal thyroid supplements which are made from potent and natural herbs. With the combined effect of various herbs, these capsules regulate the functioning of thyroid gland. These capsules control functions of pituitary gland which release TSH. Pituitary glands are mainly responsible for the underactive and overactive thyroid functions. Thyroid gland then produce controlled amount of T3 and T4. Thus, metabolic process become normal which prevent increase or decrease in weight. These capsules also control heart muscles to keep blood pressure normal. Both hypertension and low blood pressure cause problems like poor energy, weak stamina, hyperactivity, etc. With the help of these capsules, one can get proper amount of energy which prohibits hyperactivity, sleepiness, fatigue and weakness. By improving metabolism and blood circulation, these capsules also increase immunity which protects a person from illnesses. This in turn protects the thyroid gland against damage.

Thyronil capsules control iodine level in thyroid gland which prevent inflammation or enlargement in this gland. Herbal formula of these capsules also prevents formation of lumps in thyroid gland. This saves from discomfort and heaviness in lower part of neck. Regular use of herbal thyroid supplements reduces possibilities of cancer in men which may be caused due to thyroid nodules. Thyronil capsules are also helpful in reducing effects of thyroid disorders on brain. Controlled T3 and T4 levels keep mind calm and prohibit rush of negative thoughts. This in turn reduces anxiety, stress, depression, emotional instability, panic attacks, sleep trouble, hallucination and imaginary thoughts which are often seen in people suffering from thyroid disorders. The most dangerous mental issue which affects a person badly due to hyperthyroid is schizophrenia. Use these capsules regularly to maintain stability in physical health and mind.

These herbal thyroid supplements are suitable for both men and women. These capsules give effective results irrespective of age. Use these capsules for 3-4 months consistently to avail full benefits. One can take these herbal supplements to prevent goitre and to get long lasting relief from other thyroid disorders. Also, eat balanced diet to prevent less or over consumption of iodine.