15/02/2014 Your Money


15/02/2014

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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

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