A year of revolution

OVER the past year there has been an extraordinary upheaval in the way millions of Britons manage their money.

In fact, if in December 2013 a fortune teller had told me what was in store, I would have thrown their crystal ball in the dustbin because I simply wouldn’t have believed them.

First, let me say that many of these changes are very welcome. Often they represent vindication for Money Mail’s years of campaigning for a better deal for savers young and old.

The most striking has been George Osborne’s decision to shake up the rules around retirement.

Revolution i s an over- used term, but the Chancellor’s plans to give everyone easy access to their life savings built up in a pension pot was nothing short of this.

From next April, savers over 55 will be able to use their pension pots as they like. It’ strulya dramatic change because until now many have felt they had no choice but to take an annuity, which pays an income for life.

Annuities, of course, have their place for those seeking a stable income in retirement. But in many cases, the way these deals were sold meant savers missed out on the best deals.

In 2015 all this will change. Customers can keep their pension invested and take an income from it. Every time they access it, a quarter of the cash will be tax-free. And instead of leaving their life savings to their pension company when they die, it will become much easier to pass on their money to their loved ones.

There was also some much-needed good news for savers this year.

They can shield more of their money from the taxman, after the Isa limit was hiked to £15,000. In addition, widows and widowers can i nherit their spouse’s Isa and benefit from the tax-free returns.

There’s been a major boost for the young, too. Soaring house prices and £ 9,000- a- year university fees mean it’s never been more vital for future generations to learn about finance.

For years, what should be a vital school subject has been put on the backburner in exchange for media studies and woodwork classes.

But finally in September, after years of campaigning from MPs, Moneysaving Expert’s Martin Lewis and Money Mail, financial education became part of the National Curriculum.

There have been numerous other shake-ups. Banks have continued to slash branches and are instead pushing customers to manage their accounts online, while contactless cards are increasingly replacing cash.

So- called peer to peer firms, which lend out customer’s cash to strangers by promising them returns as high as 8 pc, also continue to surge in popularity among savers sick of rockbottom bank interest rates.

Customers are being given unheard of choice over what to do with their cash. But some words of warning. Many of these changes could easily turn into a nightmare if they are not given help to make the right decision.

For i nstance, without the proper checks, the pension changes could become a feeding frenzy for fraudsters or the unscrupulous who try to cash in on the vulnerable or ignorant. That means proper and vigorous guidance for those taking up these freedoms.

And savers who invest in peer to peer lending need to be clear they know the risks.

Unlike with money in a bank account, if the firm in which they have invested goes bust their money is gone.

I’d also like to see those managing their accounts online getting more help from banks to protect them against fraudsters.

And savers unable to use a computer must not be barred from the best deals.

Smallprint saga

ThIS year, online auction site eBay turned 15. Over the years it’s helped my wife and I offload plenty of old junk that someone else thought was worth shelling out for.

Admittedly, we’ve also ended up buying plenty of stuff I had never thought was absolutely vital until I saw it for sale on the site.

When handing over my cash to strangers, it’ s always been comforting to know that eBay will protect my cash if something goes wrong. So it’s worrying to see from our story on page 48 that this ‘protection promise’ isn’t quite what it seems.

Our mailbag has begun to see more such complaints and problems with missing payments, failure to refund from fraudsters and poor customer service.

Yet again, this sorry saga only goes to show that it’s vital always to check and then double-check the smallprint.

I strongly suspect that the unfortunate couple in our story will be the first of many to fall foul of gaps in the online auction site’s rules.

Wooden spoon

WITh the New Year comes a new winner of the title no firm ever wants to win — that’s Money Mail’s Wooden Spoon for shocking customer service.

Your votes have been flooding in, and it’s as close as ever this year. Thousands of you have already told us who you think deserves the award.

It’s too late to send in a postal vote, but if you’re online, we’re still keen to hear which of the eight firms on our shortlist made you fume the most in 2014. Vote at thisismoney.co.uk/spoon by midnight tonight.

If you don’t have access to the internet, ask friends or family to help.

All that’s left is for me to wish you all a very happy and prosperous new year.

JAMES CONEY is away.