15/02/2014 Your Money


15/02/2014

Weekly round-up of news about mortgages, savings, credit cards, bank accounts and pensions, plus helpful tips and advice. With Declan Curry.


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be closed for a month. The Roman Catholic Church has criticised

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government welfare reforms. Now Declan Curry is here with Your

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Money. Hello and welcome to your weekly guide to making the most of

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your cash. Richer in retirement. The city watchdog says pensioners could

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be 7% better off every year in old age if they got a better deal. Our

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reporter seeks out hidden treasure in old maps. And Kate has tips on

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turning spare cash into a Child's nest egg. While we work, many of us

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save for our old age. Many of us will then take those savings and

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swap them for an insurance policy that promises to give ours and

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income every year that we live. They are often add value. If you watch

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this programme you will know that you can shop around because we have

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gone on and on about it, now the city watchdog has caught up. Over

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400 annuities -- 400,000 annuities are sold every year. Six out of ten

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of us do not shop around and almost deep percent could get a better

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deal. -- 80%. Getting a better deal could increase your annual income by

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7% per year. We knew much of this already, what is the watchdog going

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to do about it? It has taken them a year to get to this stage. They are

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now telling us that many people do not get a decent deal out of their

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pension saving which is a tragedy. If you have spent years putting

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money into a pension plan you are entitled to get the best return from

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it. Many people are not doing that. What the watchdog has done is put

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some flesh on the bones and given as some evidence of the fact that so

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many people are missing out by not shopping around. Do people actually

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understand the value of shopping around to get the best possible

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deal? Is it going to be worth their while to pay a financial adviser to

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help with this? The system is probably too complicated and needs

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some radical change. You put your finger right on one of the problem

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is, if you go to a financial adviser they will say it is going to cost

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you money and your instinctive thought is why should I pay for

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advice for something I do not really understand? Yes, but everything will

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not be fine as we know, the statistics the watchdog has produced

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show that is not the case. If able get this wrong, they get it wrong

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for life so it is often worth paying a few hundred pounds to get the

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extra thousands over the course of your lifetime. There are also

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annuity brokers that you can go to who will do the shopping around for

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you, you will have to pay something to them as well but I do urge people

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to take this very seriously and, where necessary, take advice. They

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need to consider the timing of the annuity purchase, they do not have

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to take an annuity and the older you are when you hand over your pension

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pot for an annuity, the better the deal you have. That is because there

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is less time for that payment to be made to you. Do you get one that

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pays you a level income for life or one night gives you a spice 's

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benefit or one that is linked to inflation? -- spices benefit. You

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have a real possibility of getting a big increase in your income. People

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are living longer and therefore they cost more to provide but really we

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want to get the best deal. The regulator is now going to do a

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further study to look at things like the profit margins of some of these

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insurance companies and whether there is any sort of market default

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going on here which could be put right. I welcome that, I just wish

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they would get on with it because there are 400,000 people per year

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taking out a new tees and many are getting a poor deal. This needs to

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be put right. Thank you for your insight and shading your expertise

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with us. -- sharing. Customers who were mis-sold insurance for home

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repairs, there will be payback. You do not need to do anything, the

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company will write to you if you are to get that cash. They have been

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fined for taking advantage of customers. Over 700,000 forms missed

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the tax revenue deadline and will be fined. There was a 23% jump in loans

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to people buying their first house or flat. Despite the government

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funding for lending and help to buy schemes, buyers still typically

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offer a deposit of 20%. The energy companies are making more profit

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than first thought says the energy minister. He has told the watchdog

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to considerably king the biggest firms up if they are too dominant.

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If you remember pirate stories, you will know that X Marks the spot. It

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is the place on the map that the secret treasure is buried. What if

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the map itself is the secret treasure? You may not have thought

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of lobes themselves as a potential investment but even as paper maps

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are replaced by tom-tom they are becoming desirable. This is

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currently priced at just over ?1 million. Last year alone this firm

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sold 20 more pieces than before. The number of people interested in maps

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has increased, they are also a broader range of people coming in

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and becoming interested in the material. Younger customers are

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visiting the market. 25 to 30-year-olds guard the bigger

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screw. People are very aware of mapping and I think that has created

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a renewed interest in the process of mapping historically. It is tempting

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to think you have to spend a lot of money to get anywhere with maps but

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the 1931 edition of the London underground map was given away for

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free and it is now worth ?1500. Plans of the tube have become

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eminently collectable. People buy up things they have a connection to

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which has boosted charters of major cities. So too are satirical maps

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related to historical events. This man thinks the Internet is behind

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rising prices, particularly items from the last century. A few years

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ago I do not think people realise how rare some 20th-century material

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was. They've got something for a hundred years ago would be more rare

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than something given away free in the 1940s. Did I see the end of

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March for the tax thing? It is January. We all knew it was. For

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some reason I said March! If you pay your energy bill by direct debit and

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the company takes too much from you in advance how do you get it back?

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EDS says it will give the fool annual refund to any customers who

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are in credit. They will give you an automatic refund if they have taken

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too much. Until now, you have had to request one. If you are with another

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company heeded the advice. Take an up-to-date meter reading, send it

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in, check your next bill, if you are in credit phone them and ask for the

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money back. If you are dreaming wistfully about the time your

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children move out in that does not necessarily ease the strain on your

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bank account. How can you make your money work harder? Kate Murray is

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head of savings and investments at a family finance specialist. She is in

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Brighton for us. The biggest challenge for any pavement is to

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find any spare money at all at the end of the month but assuming it is

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they are, you to aim for, giving for the short-term and saving for the

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long-term. You need to think about different ways of saving. The first

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thing is to save for the short term, for the here and now. You might want

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to open a bank or building society for your child, put it in their

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name. In those accounts, if you get ?10 in a birthday card or pocket

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money, you want to put that money away with the child. That really

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helps the child learn about the value of money. If they want to save

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for the latest tablet or a school trip, or an outfit for a party, that

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is the type of thing where they go with a passbook. They might have a

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cash card. They need to learn how to budget. We had school savings and

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things like that many years ago. Saving for the long-term is

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different. It is very different. That is really about saving for the

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child 's future, when they are young adult. We all know the pressures

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that young adults have now. Whether it is saving to get their first step

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on the housing ladder, for example. The cost of university fees are so

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much higher than when I went to university. The average debt. One

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leading university is ?30,000. That is about saving for the long-term.

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The key message for me is to start early. Doing little and often can

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really make a difference over the long-term. There are now a junior

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versions of the ice, the tax efficient account. You can open one?

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Junior ISA 's, you were saying how difficult it is for parents who want

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to do the right thing. You can ask God parents and grandparents to get

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involved and they can pay into those accounts. One group of children

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cannot have a junior ice and they are those who could have had a child

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trust fund. If you could have got one, you cannot have a junior ice.

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If your child was born between September 2002 and June 2010, they

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would automatically have had a child trust fund. That product actually is

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very similar to the Junior ISA. Both are long-term savings products and

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both are locked away for the child for when the child reaches 18. Thank

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you very much. That is all for this week. News, tips and information

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about savings, borrowing, spending, pensions and all the rest of it

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online. Updates of course by following our feed on twitter.

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Thanks for watching again this week. I hope to see you next week. We have

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more for you then. This is BBC News. The headlines: two

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people die after another night of fierce storms batter Britain. One

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woman was killed in London and an 89-year-old man was killed on board

:14:47.:14:48.

Weekly round-up of news about mortgages, savings, credit cards, bank accounts and pensions. Helpful tips and advice on how to get the best deals, consumer rights and making your money work harder for you. With Declan Curry.


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