The scandal of the public sector's 'pensions aristocrats'

For most of us, defined-benefits pension schemes have been closed for good. But not for the public sector 'aristocrats' that we're still expected to pay for.

A headline in the Daily Mail: 'Fury as BBC pensions bill soars to £2bn'. Very often, when the Mail claims national "fury", it is hard to join in. Not in this case. The piece gives a few examples that really do produce fury. Let's just look at one.

There is John Smith, who has just retired as head of BBC Worldwide (the commercial arm which is nonetheless 100% owned by the BBC) aged 55. Imagine retiring at 55! How fantastic. Then imagine doing so, as Smith did, with a lump sum of over £1m, and an annual pension of £197,000. The pension pot, we are told by the Mail and by the Telegraph, had a total value of £5.8m. The source details are here.

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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.