I like this bleak but reality check type reading and I totally hear you on the governmemt devaluing the pension in future - hell, most people wouldn't even notice it.
In fact they've already done it with the UK teacher pension by changing the inflation index it's linked to.
And they've put the retirement age back to 68 from 65 for the general pension.
On stock funds - do you think they'll go on growing? I predict capitalisms got two, maybe three state bail-outs left - one of which will decimate the entire Western welfare system (basically Greece for eveyone), then the next crash should trigger total global economic meltdown.
With any luck I'll be dead by that point, but if I am still alive, I want to be living self-sustainably without the need for money - that's my long term retirement plan = monyless!
I agree on your analysis of number of bailouts and subsequent outcomes. Now the question as to what comes next... What happens to those of us who have enough for a comfortable life when the majority is struggling? Violence is unfortunately increasingly likely as wealth disparity increases. The careful investor ought to put as much effort into strong family bonds and solid friendships, for after all money is just a representation of social capital.