Yes, we have what is called Social Security. It varies by how much wages one earned over their working career, but the average (2012) was $1,230/month. Social Security is "funded" (loose term) by payroll taxes, which are taxed and capped up to the first $113k in income. The more you earn, the higher the benefit.
Assuming 3 percent risk-less yields, PV of that $70k(ish) pension for a 55-year old who is retiring today and is going to live to the ripe age of 85 is some 1.5 million dollars. With inflation adjustment about 2 million. Not rich, but definitely not poor in my book...
jul 1982 when the $spx was at 107 and in april of 2000 the index was at 1452. the gain on initial capital invested from jul 82 to apr 2000 was 1257%. (1452/107)=13.57=12.57(13.57-1) or 1257%. Is it not true the average annual gain for the spx from 1982 to 2000 was 69% per year, I said average, not compounded? (12.57/18=.69)??
Your "average" number is irrelevant... it's the compounded rate. Given your numbers, the average annual compounded return is about 15%... not too shabby. However, most pension funds are more conservative and invest most of their capital in bonds of one form or another. Many, many pension plans are waaaayyyyyy under funded. They make projections of anticipated returns and invest amounts based upon those projections... then when the returns are much lower, they end up under funded.