26/07/2014 Your Money


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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 `


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