Where to start with my pensions?

[BuzzieLittleBee]

I turned 50 this year, so have realised it's time I did something about my pensions! I have conformed to the stereotype of just going with the flow, letting them do their thing in the background, opening the annual statement each year and not paying attention. So today I have dug out all the paperwork and have got:
Pension 1 (left employment in 2003, 3 years' contributions) - c30K
Pension 2 (employment from 2008-2012) - c£82k
Pension 3 (employment 2012 - 2016) - c£28k
Pension 4 (current employment) - c£155k

I have, over the past couple of years, hugely upped my contributions, so I'm putting a pretty high % of my salary into my current pension. I do have scope to increase this slightly as we have paid off our mortgage now.

From what I can tell, pension 2 seems to be performing very well (given the level of contributions and growth), but there is probably merit in consolidating some of these pots. But how do I work out what's worth doing and what's best left alone? Do I need to see an IFA? Or are there good resources I can use to make sense of it myself?

I got as far as registering online to see each of them, and was expecting a nice, easy to use website - like you have with online banking. But (with the exception of Pension 1), they are not nice pretty sites, using consumer language. I wanted to find out what the fees were, but even that seems hard to find.

From what I can gather, it looks like a decent size pot to have at my age (particularly with no mortgage), but I'm a bit clueless as to how much I 'need' to be able to retire with a good standard of living.

DH has a decent pension too, but his is more straightforward as it's mainly a final salary one (it changed in the last few years, so he's making AVCs alongside it to top up), so he doesn't need guidance at this point. I just don't want to be sitting here in my late 50s realising I should have taken some action now.

That's all a bit rambling, but if anyone has any words of wisdom or advice on where to look for advice/information, or what to read up on, or what kind of things I should be considering, I'd be very grateful!

I was in the same place as you; in the end I handed it to an IFA. In theory I could have sorted it all myself but in practice it was taking too much time and effort.

I now have everything that could be consolidated in a single, drawdown pension. It does have a nice clear website so I can see what's there. Psychologically it's just easier to get my head around.

I would say you're doing OK, overall, but of course it does depend on how you like to live. And if you're in a good sized family home the chances are you will downsize eventually and that will release a bit more capital.

You need to look at what they are invested in- although you talk about pension 2 doing well etc this is down to the underlying investments- and think about whether they meet your needs. So look at each and see what it’s actually invested in (I’m guessing the default fund but you never know).

Worth giving some thought now to whether you plan to stay invested on retirement and draw down or buy an annuity, as this will affect how much you should move out of equities and when.

Do you have an age in mind for retirement?

What level of income are you hoping for?

I guess that's the issue - I can see what they're invested in, but it has no meaning for me. So I don't know what to do with that information!

I have always assumed I would draw the money down (rather than buy an annuity), as that seems to be what most people do now (plus DH is on a final salary scheme, so that will pay out each month regardless), but again, I don't know where to look/read/research to help inform that decision.

I don't have an age in mind for retirement, but equally, I don't want to stay in my 'career' until I retire. I can see myself changing tack in a few years and working in a job that is more fulfilling, and probably part time, but that of course will pay less which I'll need to factor in!

I know all the things I need to think about/consider, but I don't know how to work out the answers. That's the problem...

I have always assumed I would draw the money down (rather than buy an annuity), as that seems to be what most people do now

One point to bear in mind is that you can do more than one thing with your money, e.g. buy an annuity for £100k and then keep the rest invested.

I recommend listening to the Meaningful Money podcast. He is really good at explaining this kind of thing.