Starting young to save for retirement

Money Box

BBC

Business

4.2 • 825 Ratings

🗓️ 16 November 2019

⏱️ 28 minutes

🔗️ Recording | iTunes | RSS

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Summary

The UK's banks haven't been able to agree who should pay compensation to customers who have had money fraudulently stolen from their bank accounts. Until last May the banks routinely refused to refund these customers. A new Code promised that all innocent customers would be reimbursed from 28 May but that runs out at the end of next month. We speak to Tom Blomfield boss of Monzo, one of the biggest online-only banks.

Can technology be used to make it easier and cheaper for people to borrow money - especially those who use expensive short term credit or have poor credit ratings? That was the starting point for the Affordable Credit Challenge which was launched in July to make loans not only more affordable but also more available to low income households. We find out about the solutions that have made it onto the shortlist.

A few weeks ago we were contacted by a listener who had suggested to his daughter and son aged 19 and 18 that they start a pension. But they told him "it was a bonkers idea". But could they be persuaded it was in fact something worth considering?

And the joke bank notes that made their way into circulation: who bears the cost when they’re discovered not to be legal tender?

Presenter: Paul Lewis Reporter: Dan Whitworth Producer: Alex Lewis Editor: Emma Rippon

Transcript

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0:00.0	You're about to listen to a BBC podcast, but this is about something else you might enjoy.
0:05.4	My name's Katie Lecky and I'm an assistant commissioner for on demand music on BBC Sounds.
0:10.8	The BBC has an incredible musical heritage and culture and as a music lover, I love being part of that.
0:17.5	With music on sounds, we offer collections and mixes for everything, from workouts to
0:22.4	helping you nod off, boogie in your kitchen, or even just a moment of calm. And they're all put
0:28.3	together by people who know their stuff. So if you want some expertly curated music in your life,
0:35.0	check out BBC Sounds.
0:41.2	BBC Sounds, music, radio, podcasts.
0:47.8	Later, we'll ask if technology can solve the old problem of getting affordable credit to people on low incomes.
0:56.8	We have advice from a teenager on saving for retirement and the joke banknotes that found their way into and out of an ATM.
1:00.9	But first, the UK's banks are squabbling among themselves about who should pay compensation to customers who've had money stolen from their bank accounts,
1:06.5	victims of what's called authorised payment fraud,
1:09.6	where they're conned into taking apparently innocent steps which help thieves steal their money.
1:15.1	The banks used to routinely refuse to refund them, but since the end of May, a new code promised that innocent customers would be reimbursed,
1:22.6	and the temporary fund was set up by the banks to pay out, where the bank and the customer had done everything right, but the thieves got the cash anyway.
1:31.6	Now that funding stops at the end of this year, and it was announced on Friday that there was no consensus on who would pay these innocent customers in future.
1:40.1	So from January 1st, as things stand, blameless victims could be left unprotected because banks can't agree who will pay.
1:49.5	Tom Blomfield is Chief Executive of Monzo, one of the biggest of the new online banks.
1:54.6	So the proposal was to add a small fee to every payment that goes through the network and to put that in a central pot and use that to reimburse victims of fraud.
2:02.5	Of how much honour of payment?
2:04.3	That was still being debated, but a handful of pennies.
2:07.4	And who would pay that? Would it be the customer or the bank?
	...

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