15/02/2014 Your Money


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


government welfare reforms. Now Declan Curry is here with Your


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


understand the value of shopping around to get the best possible


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


insurance companies and whether there is any sort of market default


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


and becoming interested in the material. Younger customers are


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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