Beware: you may be saving too much in your pension

It’s very easy to unwittingly save too much into your pension, says Merryn Somerset Webb. And if you do, you will be hit with a whopping tax bill.

I listened to Blackrock's Larry Fink speak at the National Association of Pension Funds conference in Edinburgh this week. He was very clear that everyone must save more; that his industry must somehow "communicate the urgency to save today"; and that anyone who didn't act on this urgency would face a "miserable future".

You might think this is something of a statement of the obvious. But it isn't. There is actually a large group of people who, far from under-saving into their pensions, are dangerously over-saving.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.