Advice needed for retirement planning.
I am retiring from my job at one of the big three auto manufacturers, and I am unsure of what route I should take to fund my retirement.
I am 52, in good health, single, no kids, house paid for, only $40,000 in rrsp contributions (ie lots of room)
I have 3 options...
1) Take the pension offered by GM (Aprox $3400 per month bridged (ie once i start collecting old canada pension, etc my pension payout gets less so i will always make $3400 and will never take home more)
2) Take the commuted value of the pension ($737,000) to invest myself or through a financial advisor.
3) Transfer the commuted value to a copy cat annuity via a bank or insurance agency (some offering $10,000 cash back)
My thought process... (and struggles to decide)
-I am unsure of the long term stability of GM, thus impacting my pension.
-I believe the market is way over inflated and that the economy as a whole is due for a sizable downturn. (ie I would hate to have my money newly invested only to see it drop 30% or more and then have to rebuild.)
-Transfer the value of my pension to a annuity of say dejardins (who is offering the best rates atm)
Neither my pension nor a annuity would be indexed to inflation and that concerns me greatly.
I am going to sell my house and either rent or downsize (my house will net as much as my pension)
So I am asking for advice on what the best path forward for me would be... What would you do and why? How would you protect your money from inflation, a stock market crash or just play it safe and take the annuity/pension and invest the proceeds of the house? (what form and ratio would your investments take?)
I humbly await your responses.