on pensions

The BBC commissioned a survey which suggests half the UK are not putting ANY money into pensions, and on the BBC news yesterday, it was further suggested that a person aged 50+ would need to put £1000 every month into a pension scheme in order to acquire a pension income of £10,000 (by today's value, I presume) from age 65 onwards. So that's,

(65 - 50) x 12 x £1000 = £180,000

According to this article, again by the BBC, the Office for National Statistics reveals longevity for men in the UK in 2006 to be 77.3 years. Let's call it 78.

(78 - 65) x £10,000 = £130,000

Is there something wrong with this maths? What happened to the average pensioner's other £50k? Okay, this is a gross simplification: investments could go up - or down; inflation could go up - or down; interest rates could go up - or down. Based on recent trends it's down, down, down all the way. Notwithstanding the potential effects that peak oil, climate change, and population growth will have on all of this. Is it any wonder people aren't climbing over each other to give fund managers their ''hard-earned'' wonga?

People forget how new this extravagant pension idea is; my grandfather's father never had one and I doubt my grandchildren will. Our generations have been living in a cosy bubble of prosperity and it's about to be pricked. We really have to rethink our old age plans.