But if he turned 65 in 2003, his 401(k) savings would only buy an annuity rich enough to replace 57 percent of his pre-retirement income.

For ease of calculations, let's assume a pre-retirement income of $100,000.

The average worker - average pay now is $37,000 - retiring in 2075 would face a cut equal to 10 percent of pre-retirement income.

Someone earning the equivalent of $1 million today would see benefit cuts equal to only 1 percent of pre-retirement income.

Statistically, you need about 75 percent of your pre-retirement income to maintain the same life style you are accustomed to.

To replace 80 percent of pre-retirement income, as financial advisers recommend, workers will therefore need much more in the piggy bank.

Compliance eroded and with it, the real value of pensions which, by 1987, had fallen to 25% of pre-retirement income.

About half of people queried in retirement confidence surveys think they'll need less than 70% of their pre-retirement income.

In other words, your pension benefits will be significantly lower than the acceptable standard of 70 per cent of pre-retirement income.

Experts advise that you will need about 80% of your pre-retirement income in your retirement years.