26/07/2014 Your Money

expected. That can be done things of the Government says, here is free

guidance but how useful will it be? Hello and welcome to Your Money,

your weekly guide to making the most of your cash,

here on television every weekend and Free information for pensioners to

help them manage their money ` the house sellers demanding more

money after the sale's been agreed. We'll see if you can stop

it happening to you. Maybe it's time to say goodbye to

your old student bank account too. We've got advice on finding

the right graduate account. After next April,

anyone who is retiring will be able to do what they want with

their pension savings. No limits on how much cash you take

out, no rules There are all sorts of worries that

people who've saved carefully and prudently all their lives will

suddenly flip and blow the cash on sports cars, lemon`piped leather

jackets and endless world cruises. So now the Government says

the newly`retired will get free, independent guidance

on money matters, paid for Padraig Floyd is a financial

journalist who specialises Welcome. The Government when it was

talking about this, did not use the word advice. It is saying guidance.

There are questions about how useful this information might be. It is

difficult to work out how useful it will be because we do not know who

will be delivering it. It has spent the last few years overhauling the

advisory element of the financial services market by making advisers

to clear how much they are being paid by product providers. So until

we find out who will be delivering it, it will be difficult. And there

is a big difference between advice, which is personal to you, which is

based on your details and circumstances, and just general

information, broadbrush, superficial. Guidance will give you

an indication what you may do with your money, whereas advice is

specific to the individual and looks at the individual circumstances.

Therefore, it is arguably worth the money that some of you may be asked

to pay for it. This is the old argument that you get what you pay

for. If you are paying for something that will effectively look at your

spending for the rest of your life, you should really be investing

something in it as well as a little bit of time. I heard you say we are

not sure who is good for this free information. I have seen some names

that the Government has suggested. Citizens' Advice, for example. The

money advice services, which is currently up and running. Age

concern? They have not pinned it down yet because we had yet to see

some regulations. But there could be a number of organisations,

independent of the financial services industry. They have also

mentioned the pensions advisory service and the money advisory

service. The pensions advisory service for those in the industry is

generally look the front runner because it offers already very good

independent guidance to individuals about what they might do or how they

could finance and a pension they may have had in the past. But there is a

disconnect, we are talking about people who have saved all their

lives, they have been prudent and careful, getting information on what

to do with that money now they have the freedom to make those decisions.

We are talking about advice `` we are talking advice `` we're talking

about information from organisations that are more used to dealing with

retired people who do not have much money at all. Many of these reforms

have been suggested by the Chancellor Hummer because he seems

to be opposed about people buying annuity. The reality is that the

vast majority of people will retire with less than ?40,000 and have very

limited options. So, they may have been pushed the words something that

will secure their income for life, with the freedom of being able to

access all the money as cash, comes responsibility. That is by the

Government is pushing this idea of guidance. `` that is why. Thanks for

looking into this. One other note on pensions ` if you

delay taking your state pension, That scheme is

about to become less generous. At the moment, your pension rises

by just over 10% for every year you You get the extra payment gradually,

so you have to get ten years of pension payments

before it becomes worth your while. Under new rules, the increase in

your pension for delaying it will be That means you'd need to claim

the pension for 19 years But have you packed

the right travel insurance? The insurance companies say you do `

they would say that, wouldn't they? But think about this ` each week,

4,000 people claim on their travel insurance

for medical treatment while abroad. Get a European Health Insurance Card

` the EHIC. It's not a substitute for travel

insurance, but it is free and allows you to receive emergency treatment

from public hospitals across Europe. If you are buying insurance, they

say, don't buy a policy based on price alone ` the cheapest policy

may not cover all of your needs. If drinking sangria and dancing

on the tables is your dream holiday, check the small print `

some insurance policies don't cover There's more information

and advice from the Foreign Office on its Know Before You Go website `

www.gov.uk/knowbeforeyougo. Rising house prices at tempting were

sellers to demand more money at the last minute, even after the sale has

been agreed. We met one wire who has been left high and dry and we find

out how you could stop it happening to you. I am in love with this flat,

it is a beautiful building. Lucy is a primary school teacher from

London. She and her partner are desperate to buy the first flat and

had been living with his parents to help save for a deposit. Twice over

the past year, they thought they cracked it. They had offers accepted

and they cracked it. They had offers accepted

and came within a few days of exchange, then both times, they had

an unexpected shock. We found the first flat, which was perfect for

us, we work pleased we found it, then coasted exchanging, the vendor

has asked for more money, which we couldn't afford. So we continued

looking, then found the second flat, which were really pleased to find,

then the same thing happened. The vendor has asked for a lot more

money which we couldn't afford. We were really upset. Just really

shocked that it could happen a second time. Lucy has been a

of ghost gazumping, a trend that has been on the rise in property

hotspots that London and the south`east. The pattern is usually

the same, a sale is agreed but there is a delay before exchange. The

seller sees prices raising and decides they can get more money if

they remarket the property. So the gift buyers and automating, pay

more, or miss out. `` they give. This kind of gazumping is perfectly

legal. The law in England and Wales says that sellers and buyers can do

what they want until exchange but just because it is legal it does not

mean it is fair. The problem with the property market is that it

brings out the worst in people. Sellers will do to their buyers what

they would not dream of doing to their friends or family. It is

unfair, it is immoral, it is greedy for the very often, buyers have

spent a considerable amount of money through that Purchase, only then to

be left high and dry. So who's to blame? Estate agents say it not

their fault. An agent does not want this but gazumping. They want the

sale to go through quickly. I suppose it is partly media, people

see headlines and they see the headlines for where they live. I

have been in areas in the North East where properties have been on the

market for three years and they read the media and they think their

property will go up but it hasn't. There are things buyers can do to

reduce the risk of this happening to them. Speed is of the essence. Have

Jalawla and finance in place. And keep everyone posted with

updates on what is happening. `` have your lawyer.

This will come of `` as little comfort for Lucy. She has now given

up on the idea of running her own home, for now. It is back to rented

accommodation. An important date for the diary. If

you fill out a self`assessment tax form and pay tax in advance on

account, your second payment is due at the end of this month. It also is

very important for most people who get working tax credit or child tax

credits because most of them have to renew their claims before July the

31st, otherwise your payments may be stopped. You have to tell the taxman

if there has been a change in the number of hours your work or change

in your wages. You need a renewal pack, for which you can call the

helpline. If you do not have to renew, you will be given a different

date. The financial ombudsman is getting

up to 5000 new completes every week about Payment Protection Insurance.

That is the insurance supposed to cover credit card payments if we

lose jobs or fall sick. If you were solid and did not need it, you are

entitled to a refund. To get it, contact your bank first. Only get in

touch with the ombudsman if the bank does not sort it out properly.

If you're on a fixed`rate energy bill, you might want to check when

it runs out. New switches will find deals with its bland `` expire at

the end of joy or August and customer deals will be transferred

to a more expensive rollover tariff, which could mean an average rise in

your energy bill of ?103. Speaking of energy, people whose

power is cut off for long spells during bad weather will be entitled

to higher compensation. If you go at least 24 hours without power, the

regulator is raising the minimum payment per customer to ?70. The

maximum amount that can be claimed by a customer is also going up to

?700. That higher`level will come into effect from April, 2015.

If you have just left university, congratulations, now you will

discover what real work feels like! You probably have a lot of debt, so

what bank account is best? You are from a charity which teaches young

people how to manage the money better. If you have just graduated,

you have so many things to worry about. A new job to find, CVs

descender, you might be planning a last long holiday. Looking at the

bank account is going to be pretty much at the bottom of your list. But

it is so important. A student bank account is designed for student ``

students. So, it is a good time to make that first financial decision,

look at your priority and shop around. There is a big difference

between the accounts, they are not all the same. They are not. A

student bank account will usually have an overdraft attached. People

think if they come out of university with an overdraft they cannot

switch, but that is not the case. Months `` most student bank accounts

will still be would a facility quite quickly but most overdraft accounts

may carry it on. So you may need to switch if you want to carry on the

interest`free overdraft. The other thing I would say is, don't get

stuck into a cycle of living on the overdraft, it will end eventually.

You have to start budgeting and living within your means. That means

that he won't interest`free so it is a bit easier. You can use that money

instead to pay back the debt. And you will be thinking about things

like putting down a deposit on rented accommodation, but moving,

buying things for your first job. When you look at overdraft, what are

you looking for? That long interest`free period, but also don't

forget, you may be in the lucky position of not needing one. If that

is the case, you should be looking for other accounts, not necessarily

graduate ones. Think about things like cashback, look at the interest

rates on a current account and think about saving accounts as well. Is

there such a thing as a student who does not have an overdraft

nowadays? I have yet to meet one. Who can open a graduate account?

Anyone who has graduated in the last three years. You haven't missed the

boat, even if it has been two years. But Mac so the overdraft limit,

don't go over it. Absolutely. And budgeting is a life skill. Work out

your means, live within it and get off that overdraft as soon as you

can. Easier said than done, but thank you.

That's all from Your Money for this week.

Don't forget the Your Money pages on the BBC's business website `

On social media ` you can get updates by

Israel and Hamas call a 12`hour humanitarian truce in Gaza ` 940