On indexing: I highly recommend, if you are going to be creating scenarios like this, that you learn how to use a financial calculator or the finance add-ins in Excel. That will allow you to determine PV for various sums for various periods and various indexing assumptions.
Yes. I have been using some ready made spreadsheets but they do not have the flexibility I really need. I should roll-up my sleeve and make my own. I used to do a lot of that.
I am a Nortel pensioner so I am expecting to be offered a CV in the coming weeks - 31% reduced I am afraid. I would like to know the order of magnitude of what I should expect.
When I retired, I choose to take the pension rather than the CV. I am still glad I did, because we had a few market crashes since then and my investment style was not safe enough.
Now, I will be faced with the same decision. I think, I should not take an annuity now. However, my father lived to 92 and I am in much better health than he was at my age. We have good longevity genes, unfortunately. So, eventually, I might buy an annuity for peace of mind.
I must say also that I am not good at safe investments. I just sold a lot of my bond ETFs, worrying about rate rising. I bought some RRBonds ETF's (XRB) (lousy rates but better than cash) and some High Yield funds (PHN). I am siting on 15% cash not knowing what to do with it.