:00:00. > :00:00.expected. That can be done things of the Government says, here is free
:00:00. > :00:09.guidance but how useful will it be? Hello and welcome to Your Money,
:00:10. > :00:11.your weekly guide to making the most of your cash,
:00:12. > :00:14.here on television every weekend and Free information for pensioners to
:00:15. > :00:19.help them manage their money ` the house sellers demanding more
:00:20. > :00:27.money after the sale's been agreed. We'll see if you can stop
:00:28. > :00:30.it happening to you. Maybe it's time to say goodbye to
:00:31. > :00:35.your old student bank account too. We've got advice on finding
:00:36. > :00:42.the right graduate account. After next April,
:00:43. > :00:45.anyone who is retiring will be able to do what they want with
:00:46. > :00:48.their pension savings. No limits on how much cash you take
:00:49. > :00:50.out, no rules There are all sorts of worries that
:00:51. > :00:55.people who've saved carefully and prudently all their lives will
:00:56. > :00:58.suddenly flip and blow the cash on sports cars, lemon`piped leather
:00:59. > :01:03.jackets and endless world cruises. So now the Government says
:01:04. > :01:06.the newly`retired will get free, independent guidance
:01:07. > :01:10.on money matters, paid for Padraig Floyd is a financial
:01:11. > :01:26.journalist who specialises Welcome. The Government when it was
:01:27. > :01:31.talking about this, did not use the word advice. It is saying guidance.
:01:32. > :01:35.There are questions about how useful this information might be. It is
:01:36. > :01:39.difficult to work out how useful it will be because we do not know who
:01:40. > :01:45.will be delivering it. It has spent the last few years overhauling the
:01:46. > :01:49.advisory element of the financial services market by making advisers
:01:50. > :01:52.to clear how much they are being paid by product providers. So until
:01:53. > :01:58.we find out who will be delivering it, it will be difficult. And there
:01:59. > :02:02.is a big difference between advice, which is personal to you, which is
:02:03. > :02:05.based on your details and circumstances, and just general
:02:06. > :02:13.information, broadbrush, superficial. Guidance will give you
:02:14. > :02:16.an indication what you may do with your money, whereas advice is
:02:17. > :02:20.specific to the individual and looks at the individual circumstances.
:02:21. > :02:24.Therefore, it is arguably worth the money that some of you may be asked
:02:25. > :02:29.to pay for it. This is the old argument that you get what you pay
:02:30. > :02:32.for. If you are paying for something that will effectively look at your
:02:33. > :02:36.spending for the rest of your life, you should really be investing
:02:37. > :02:41.something in it as well as a little bit of time. I heard you say we are
:02:42. > :02:45.not sure who is good for this free information. I have seen some names
:02:46. > :02:49.that the Government has suggested. Citizens' Advice, for example. The
:02:50. > :02:56.money advice services, which is currently up and running. Age
:02:57. > :02:59.concern? They have not pinned it down yet because we had yet to see
:03:00. > :03:04.some regulations. But there could be a number of organisations,
:03:05. > :03:11.independent of the financial services industry. They have also
:03:12. > :03:15.mentioned the pensions advisory service and the money advisory
:03:16. > :03:18.service. The pensions advisory service for those in the industry is
:03:19. > :03:22.generally look the front runner because it offers already very good
:03:23. > :03:28.independent guidance to individuals about what they might do or how they
:03:29. > :03:32.could finance and a pension they may have had in the past. But there is a
:03:33. > :03:36.disconnect, we are talking about people who have saved all their
:03:37. > :03:41.lives, they have been prudent and careful, getting information on what
:03:42. > :03:46.to do with that money now they have the freedom to make those decisions.
:03:47. > :03:52.We are talking about advice `` we are talking advice `` we're talking
:03:53. > :03:56.about information from organisations that are more used to dealing with
:03:57. > :04:00.retired people who do not have much money at all. Many of these reforms
:04:01. > :04:05.have been suggested by the Chancellor Hummer because he seems
:04:06. > :04:11.to be opposed about people buying annuity. The reality is that the
:04:12. > :04:15.vast majority of people will retire with less than ?40,000 and have very
:04:16. > :04:20.limited options. So, they may have been pushed the words something that
:04:21. > :04:23.will secure their income for life, with the freedom of being able to
:04:24. > :04:28.access all the money as cash, comes responsibility. That is by the
:04:29. > :04:31.Government is pushing this idea of guidance. `` that is why. Thanks for
:04:32. > :04:33.looking into this. One other note on pensions ` if you
:04:34. > :04:36.delay taking your state pension, That scheme is
:04:37. > :04:39.about to become less generous. At the moment, your pension rises
:04:40. > :04:43.by just over 10% for every year you You get the extra payment gradually,
:04:44. > :04:46.so you have to get ten years of pension payments
:04:47. > :04:51.before it becomes worth your while. Under new rules, the increase in
:04:52. > :04:54.your pension for delaying it will be That means you'd need to claim
:04:55. > :04:59.the pension for 19 years But have you packed
:05:00. > :05:07.the right travel insurance? The insurance companies say you do `
:05:08. > :05:11.they would say that, wouldn't they? But think about this ` each week,
:05:12. > :05:14.4,000 people claim on their travel insurance
:05:15. > :05:18.for medical treatment while abroad. Get a European Health Insurance Card
:05:19. > :05:23.` the EHIC. It's not a substitute for travel
:05:24. > :05:26.insurance, but it is free and allows you to receive emergency treatment
:05:27. > :05:31.from public hospitals across Europe. If you are buying insurance, they
:05:32. > :05:35.say, don't buy a policy based on price alone ` the cheapest policy
:05:36. > :05:40.may not cover all of your needs. If drinking sangria and dancing
:05:41. > :05:42.on the tables is your dream holiday, check the small print `
:05:43. > :05:46.some insurance policies don't cover There's more information
:05:47. > :05:54.and advice from the Foreign Office on its Know Before You Go website `
:05:55. > :06:11.www.gov.uk/knowbeforeyougo. Rising house prices at tempting were
:06:12. > :06:16.sellers to demand more money at the last minute, even after the sale has
:06:17. > :06:20.been agreed. We met one wire who has been left high and dry and we find
:06:21. > :06:25.out how you could stop it happening to you. I am in love with this flat,
:06:26. > :06:29.it is a beautiful building. Lucy is a primary school teacher from
:06:30. > :06:32.London. She and her partner are desperate to buy the first flat and
:06:33. > :06:36.had been living with his parents to help save for a deposit. Twice over
:06:37. > :06:38.the past year, they thought they cracked it. They had offers accepted
:06:39. > :06:40.and they cracked it. They had offers accepted
:06:41. > :06:47.and came within a few days of exchange, then both times, they had
:06:48. > :06:49.an unexpected shock. We found the first flat, which was perfect for
:06:50. > :06:54.us, we work pleased we found it, then coasted exchanging, the vendor
:06:55. > :06:59.has asked for more money, which we couldn't afford. So we continued
:07:00. > :07:04.looking, then found the second flat, which were really pleased to find,
:07:05. > :07:07.then the same thing happened. The vendor has asked for a lot more
:07:08. > :07:12.money which we couldn't afford. We were really upset. Just really
:07:13. > :07:14.shocked that it could happen a second time. Lucy has been a
:07:15. > :07:21.of ghost gazumping, a trend that has been on the rise in property
:07:22. > :07:24.hotspots that London and the south`east. The pattern is usually
:07:25. > :07:29.the same, a sale is agreed but there is a delay before exchange. The
:07:30. > :07:32.seller sees prices raising and decides they can get more money if
:07:33. > :07:37.they remarket the property. So the gift buyers and automating, pay
:07:38. > :07:41.more, or miss out. `` they give. This kind of gazumping is perfectly
:07:42. > :07:45.legal. The law in England and Wales says that sellers and buyers can do
:07:46. > :07:49.what they want until exchange but just because it is legal it does not
:07:50. > :07:51.mean it is fair. The problem with the property market is that it
:07:52. > :07:55.brings out the worst in people. Sellers will do to their buyers what
:07:56. > :08:02.they would not dream of doing to their friends or family. It is
:08:03. > :08:07.unfair, it is immoral, it is greedy for the very often, buyers have
:08:08. > :08:12.spent a considerable amount of money through that Purchase, only then to
:08:13. > :08:17.be left high and dry. So who's to blame? Estate agents say it not
:08:18. > :08:21.their fault. An agent does not want this but gazumping. They want the
:08:22. > :08:26.sale to go through quickly. I suppose it is partly media, people
:08:27. > :08:30.see headlines and they see the headlines for where they live. I
:08:31. > :08:34.have been in areas in the North East where properties have been on the
:08:35. > :08:38.market for three years and they read the media and they think their
:08:39. > :08:41.property will go up but it hasn't. There are things buyers can do to
:08:42. > :08:52.reduce the risk of this happening to them. Speed is of the essence. Have
:08:53. > :08:55.Jalawla and finance in place. And keep everyone posted with
:08:56. > :09:01.updates on what is happening. `` have your lawyer.
:09:02. > :09:04.This will come of `` as little comfort for Lucy. She has now given
:09:05. > :09:08.up on the idea of running her own home, for now. It is back to rented
:09:09. > :09:13.accommodation. An important date for the diary. If
:09:14. > :09:18.you fill out a self`assessment tax form and pay tax in advance on
:09:19. > :09:23.account, your second payment is due at the end of this month. It also is
:09:24. > :09:26.very important for most people who get working tax credit or child tax
:09:27. > :09:30.credits because most of them have to renew their claims before July the
:09:31. > :09:35.31st, otherwise your payments may be stopped. You have to tell the taxman
:09:36. > :09:40.if there has been a change in the number of hours your work or change
:09:41. > :09:43.in your wages. You need a renewal pack, for which you can call the
:09:44. > :09:47.helpline. If you do not have to renew, you will be given a different
:09:48. > :09:52.date. The financial ombudsman is getting
:09:53. > :09:55.up to 5000 new completes every week about Payment Protection Insurance.
:09:56. > :09:59.That is the insurance supposed to cover credit card payments if we
:10:00. > :10:05.lose jobs or fall sick. If you were solid and did not need it, you are
:10:06. > :10:09.entitled to a refund. To get it, contact your bank first. Only get in
:10:10. > :10:12.touch with the ombudsman if the bank does not sort it out properly.
:10:13. > :10:17.If you're on a fixed`rate energy bill, you might want to check when
:10:18. > :10:22.it runs out. New switches will find deals with its bland `` expire at
:10:23. > :10:25.the end of joy or August and customer deals will be transferred
:10:26. > :10:33.to a more expensive rollover tariff, which could mean an average rise in
:10:34. > :10:36.your energy bill of ?103. Speaking of energy, people whose
:10:37. > :10:42.power is cut off for long spells during bad weather will be entitled
:10:43. > :10:46.to higher compensation. If you go at least 24 hours without power, the
:10:47. > :10:52.regulator is raising the minimum payment per customer to ?70. The
:10:53. > :11:00.maximum amount that can be claimed by a customer is also going up to
:11:01. > :11:06.?700. That higher`level will come into effect from April, 2015.
:11:07. > :11:09.If you have just left university, congratulations, now you will
:11:10. > :11:18.discover what real work feels like! You probably have a lot of debt, so
:11:19. > :11:21.what bank account is best? You are from a charity which teaches young
:11:22. > :11:26.people how to manage the money better. If you have just graduated,
:11:27. > :11:32.you have so many things to worry about. A new job to find, CVs
:11:33. > :11:36.descender, you might be planning a last long holiday. Looking at the
:11:37. > :11:41.bank account is going to be pretty much at the bottom of your list. But
:11:42. > :11:47.it is so important. A student bank account is designed for student ``
:11:48. > :11:49.students. So, it is a good time to make that first financial decision,
:11:50. > :11:57.look at your priority and shop around. There is a big difference
:11:58. > :12:01.between the accounts, they are not all the same. They are not. A
:12:02. > :12:06.student bank account will usually have an overdraft attached. People
:12:07. > :12:08.think if they come out of university with an overdraft they cannot
:12:09. > :12:17.switch, but that is not the case. Months `` most student bank accounts
:12:18. > :12:23.will still be would a facility quite quickly but most overdraft accounts
:12:24. > :12:27.may carry it on. So you may need to switch if you want to carry on the
:12:28. > :12:31.interest`free overdraft. The other thing I would say is, don't get
:12:32. > :12:34.stuck into a cycle of living on the overdraft, it will end eventually.
:12:35. > :12:41.You have to start budgeting and living within your means. That means
:12:42. > :12:47.that he won't interest`free so it is a bit easier. You can use that money
:12:48. > :12:50.instead to pay back the debt. And you will be thinking about things
:12:51. > :12:55.like putting down a deposit on rented accommodation, but moving,
:12:56. > :13:01.buying things for your first job. When you look at overdraft, what are
:13:02. > :13:05.you looking for? That long interest`free period, but also don't
:13:06. > :13:09.forget, you may be in the lucky position of not needing one. If that
:13:10. > :13:14.is the case, you should be looking for other accounts, not necessarily
:13:15. > :13:17.graduate ones. Think about things like cashback, look at the interest
:13:18. > :13:22.rates on a current account and think about saving accounts as well. Is
:13:23. > :13:26.there such a thing as a student who does not have an overdraft
:13:27. > :13:48.nowadays? I have yet to meet one. Who can open a graduate account?
:13:49. > :13:54.Anyone who has graduated in the last three years. You haven't missed the
:13:55. > :13:59.boat, even if it has been two years. But Mac so the overdraft limit,
:14:00. > :14:04.don't go over it. Absolutely. And budgeting is a life skill. Work out
:14:05. > :14:08.your means, live within it and get off that overdraft as soon as you
:14:09. > :14:11.can. Easier said than done, but thank you.
:14:12. > :14:13.That's all from Your Money for this week.
:14:14. > :14:16.Don't forget the Your Money pages on the BBC's business website `
:14:17. > :14:48.On social media ` you can get updates by
:14:49. > :14:53.Israel and Hamas call a 12`hour humanitarian truce in Gaza ` 940