07/06/2014 Your Money

up`to`date on the BBC Sport website. I will have more in the

next hour. Hello and welcome to Your Money,

your weekly guide to making Here every weekend on BBC News

television and available all week Another big change for anyone

saving for their old age. We'll tell you what the government's

new pension plans mean for you. And how to make a budget

for your own money. A paperclip, a carton of milk,

a pair of sunglasses and a cup of coffee will all help you get

control of your finances. The government unveiled two new

pension laws this week, one which will allow people who are about to

retire and have money saved in their pension pot to dig out as much of

that money as they can or want and do what they want with it. The

second is for younger people who are still at work and saving for their

old age way into the future, they will be offered a personal plan but

their pension will not just be linked to their own savings, it will

be linked to the savings of thousands of other people. We are

joined by the editor of a retirement planning magazine. The fair are

pension plan first of all `` Ferrari. It was announced that

people retiring have the opportunity to take their entire pension as a

lump sum subject to tax. That is the thing to watch out for, it is not

all it is a quarter free of tax. Yes. The concern was that you might

get some pensioners who would take the money and spend it all in one go

and then live off the state for 40 years. People have to realise if

they are going to take this money it has to do them for life. These

collective pension funds are aimed at younger people. If you are in

your 20s or 30s, you have to pay attention. Collective contribution

is something used a lot in the Netherlands for and once. It is an

individual part which means that you make the decisions with regards to

investment, contributions, it is a big burden. With collective your

contributions are paid into a massive pot that many other people

contribute to. This brings quite a lot of benefits in terms of the

costs are a lot lower and you can get access to investment you make

not have got on an individual plan. The idea is that the access to these

things could mean you get better returns on your investment which

could lead to higher pensions. The other argument in favour is that it

reduces the risk, you are not carrying all the investment risk on

your shoulder, and it is read across different periods of time, maybe

even different generations `` spread. If there is a bad year it

will not clobber you. Yes. These are usually big companies or across

industries in the Netherlands and you have 25`year`olds saving with

45`year`olds, 55`year`olds, and their collective savings together as

a smoothing effect which means that people'sbenefits are more protected.

It is not completely foolproof because some people retire during ``

retired during the financial crisis and did not get as much as they had

hoped. There are campaigns against these pensions on their home turf.

Absolutely. There are no guarantees. In the Netherlands over the

financial crisis people had their benefits cut because there is no

guarantee, you're trying to aim for a target income, it is not

guaranteed. Thank you for joining us. The way that national insurance

contributions are collected from the self`employed is going to be

simplified. The taxman will get new powers to force tax avoidance to

cough up. There will be a tax`free subsidy to help with the cost of

childcare which will bring in `` coming in the autumn of 2015. You

will get it if you have children aged under 12, you are in work and

you earn less than ?150,000 a year. A crackdown on bogus insurance

claims, lawyers will be banned from offering incentives like free iPad

to encourage accident victims make claims. Courts will be encouraged to

throw out claims which are exaggerated. Whiplash claims will be

subject to medical assessments. If you want to protect your bank

accounts from computer viruses, the National Crime Agency says we should

change our passwords within the next week or so. It is worried about the

virus starting up again. Here is advice on how to avoid getting a

virus in the first place. It says you should install internet security

software on your computer. There is a list on its Facebook page.

Download a free app to test for the virus. Do not open attachments

unless you're sure they are genuine. Make sure your software is

up`to`date. If your computer uses Windows make sure it is the latest

update. Back`up your files. On a memory stick or an external hard

drive, not onto the computer itself. Never stop passwords on your

computer. `` store. One quarter of us worry we do not

have enough cash, or that there is too much month left at the end of

the money. We will get some tips on how to save and how to make money

but first we have advice on how to draw up a budget.

To get on top of your finances it is vital to do a household budget so

whether you're using a template online or paper and pen there are

some things you should not forget. To help us remember we have got a

paperclip, a carton of milk, a pair of sunglasses and a cup of coffee.

The budget records the money coming in and everything that has to go out

with a paperclip is for all that paperwork, you will need a note of

your benefits and the last three months or so of bank statements,

recent bills, travel receipts, that kind of thing. That keeps it

together. Be specific about what you spend your money on. Remember the

essentials, prioritise the essentials, but do not forget the

little things like milk. Not just the Saturday big shock. There is the

one for your payments like a holiday in the sun. Work out how much you're

going to set aside each month for your holiday and multiply by 12 to

make sure that is what you are going to spend your holiday. The coffee,

the whole process could take a couple of hours so you will probably

need it. couple of hours so you will

We are joined by a money expert. She has been given advice `` giving

advice for 20 years. Check your bills. Whenever your bills come in,

check them. Always think, could I get a better deal? If you have not

switched your gas or electric, if you have not sorted out your

insurance, look at all of that and think of ways you can cut costs.

Something something as simple as paying by direct debit, Sky for

example charge more if you want a paper bill. You can save by

switching to online. Sometimes sign up for things, we are ticking the

box is that say this payment will be renewed again in a years time, and

the money comes out of your account, and you think, I was not expecting

that. The car industry argues that not having car assurance is illegal,

but sometimes it will do this. If you pay for things like an antivirus

software, it is put on a rolling direct debit, so if you do not say

to them, I do not want that, and you end up stuck with it. It is always

worth checking, when you get an insurance renewal, check the quote,

because sometimes they say, nothing to do, but unless you cancel it, you

pay for another year. The big thing, that Titian is to accept a

good deal them, and you do not get a better deal later. Also, check the

price of your supermarket shop before leaving home? Yes, there is

an excellent website. This website will tell you if it is cheaper to

switch brand names from supermarket own names, and there is a very handy

app, in the supermarket, you can work out the best deals to find out

where you can get cash back. Let's look at some moneymaking tips, you

are a big fan of eBay and selling all of your old rubbish! Yes, I hear

out the attic, my daughter had a princess lump, and she sold it to a

lady in Australia for more than I had paid for it. She had it in her

room for a couple of years. I was perfectly honest, I said it has been

in my daughter's room for a couple of years. You have to go to the post

office and post it, but you factor in the cost of the posted, so in

this incident, I said, it will cost you for going to Australia, but you

build that into the price also. The person received it, they loved it

and they made money. Just be honest, do not claim that something is new

if it has been gathering dust for many years. Thank you. That is from

us for this week. You can keep up`to`date with whatever takes your

fancy on the website. More next week, thank you for watching today.