A good and important point Pete as to why we are in the mess - i.e. the endowment mortgage I took out 25 years ago (before the FSA was set up) with 'promises' at the time I should get at least double the £30k supposedly covered at the end, but instead I am getting about 2/3rds of the £30k to cover the mortgage pay-off, all because those who invest "our" money fecked up and got greedy. That failing has affected us all, including public authorities who had sought and had planned to make up the known shortfalls which Chesterfiled mentions (which has been done for many decades) by entrusting money to the 'private' sector but who got it so badly wrong big-time, aided and abetted by useless politicians world wide not contolling the money markets and that is why we are all affected now. Remember the Icelandic banks crash and the worry of the knock-on effects to many Local Authorities who have to pay the teachers wages etc.
Having worked in the public sector most of life in the last 10 years I have worked for myself. I know I can earn a lot more now, if I want to, in my professional vocation than when I was in the public sector. (Chesterfield - you are right about average salaries in the public sector being higher, but that relates to the relatively high proportion of adminstrative staff whereas there is no question that those with professional qualifications are far better off in the private sector and when seen to do well as employees will be rewarded accordingly - something that does not happen in the public sector) But as those who work in the public sector will know, the bureauracy and systems brought about by many of the 'high flyers' enticed in from the private sector with ridiculous salaries, to supposedly improve management and save money in the last 20 years mainly failed to work. In reality, it led to far worse working conditions for the front line and experienced staff tearing their hair out over new incentives that were either time-wasters or just demonstrated that the new powers in charge had no basic understanding of what the public they are in place to serve wanted/needed. That simply demotivated staff and was the main reason why I and many others I know have jumped ship in the last decade to the private sector and never looked back.
With this country now seen as a virtual charity, with easy pickings for the worlds waifes and strays who can get in, or we seem to find billions to prop up other countries (invariably a higher proportion than most other conributing countries), it is not surprising that those of us born and bred here paying our high taxes do feel we are being taken for mugs. I do understand the frustration of those who dedicated their lives to public service and will never aspire to expensive houses, cars or safe investments - the fall-back private pension pots for the fortunate few. So for teachers and the like who had thought they might see their retirement years out without having to call on public handouts, which this country still seems all to ready to provide with far too many not prepared to do an honest days work in their lives if they can get away with it, it is a bitter pill to swallow.
Unfortunately though and whilst I understand the current public service frustration, as others have said it affects the vast majority of us that are not fortunate enough to join the increasing number of million/billionaires - many from the financial world who will see out their years in luxury. It is that end of the gulf where the real money is that needs to be addressed IMO, rather than the debate about the pros and cons of the average public/private sector workers lot which has been argued over many decades.
Like Husky said a while back, most in their early years do not think about their pensions its only when family responsibiities and middle age appears that those in public service started to wonder how much they would get. And even more these days I sense a greater "live for today and worry about tomorrow attitude". The very fact more people are renting than buying property, primarily because of the financial institutions greed, serves to suggest that what we all having to prepare for more support for those who do not have property to downsize to release extra funds because the state pension/other income support will become even more important, irrespective or public/private employment, given many will have no savings to speak of to draw on.