The Great Retirement Con

The Origins Of The Retirement Plan

Back during the Revolutionary War, the Continental Congress promised a monthly lifetime income to soldiers who fought and survived the conflict. This guaranteed income stream, called a "pension", was again offered to soldiers in the Civil War and every American war since.

Since then, similar pension promises funded from public coffers expanded to cover retirees from other branches of government. States and cities followed suit -- extending pensions to all sorts of municipal workers ranging from policemen to politicians, teachers to trash collectors.

A pension is what's referred to as a defined benefit plan. The payout promised a worker upon retirement is guaranteed up front according to a formula, typically dependent on salary size and years of employment.

Understandably, workers appreciated the security and dependability offered by pensions. So, as a means to attract skilled talent, the private sector started offering them, too. 

The first corporate pension was offered by the American Express Company in 1875. By the 1960s, half of all employees in the private sector were covered by a pension plan.

Off-loading Of Retirement Risk By Corporations

Once pensions had become commonplace, they were much less effective as an incentive to lure top talent. They started to feel like burdensome cost centers to companies.

As America's corporations grew and their veteran employees started hitting retirement age, the amount of funding required to meet current and future pension funding obligations became huge. And it kept growing. Remember, the Baby Boomer generation, the largest ever by far in US history, was just entering the workforce by the 1960s.

Companies were eager to get this expanding liability off of their backs. And the more poorly-capitalized firms started defaulting on their pensions, stiffing those who had loyally worked for them.

So, it's little surprise that the 1970s and '80s saw the introduction of personal retirement savings plans. The Individual Retirement Arrangement (IRA) was formed by the Employee Retirement Income Security Act (ERISA) in 1974. And the first 401k plan was created in 1980.

These savings vehicles are defined contribution plans. The future payout of the plan is variable (i.e., unknown today), and will be largely a function of how much of their income the worker directs into the fund over their career, as well as the market return on the fund's investments.

Touted as a revolutionary improvement for the worker, these plans promised to give the individual power over his/her own financial destiny. No longer would it be dictated by their employer.

Your company doesn't offer a pension? No worries: open an IRA and create your own personal pension fund.

Afraid your employer might mismanage your pension fund? A 401k removes that risk. You decide how your retirement money is invested.

Want to retire sooner? Just increase the percent of your annual income contributions.

All this sounded pretty good to workers. But it sounded GREAT to their employers.

Why? Because it transferred the burden of retirement funding away from the company and onto its employees. It allowed for the removal of a massive and fast-growing liability off of the corporate balance sheet, and materially improved the outlook for future earnings and cash flow.

As you would expect given this, corporate America moved swiftly over the next several decades to cap pension participation and transition to defined contribution plans.

The table below shows how vigorously pensions (green) have disappeared since the introduction of IRAs and 401ks (red):

(Source)

So, to recap: 40 years ago, a grand experiment was embarked upon. One that promised US workers: Using these new defined contribution vehicles, you'll be better off when you reach retirement age.

Which raises a simple but very important question: How have things worked out?

The Ugly Aftermath

America The Broke

Well, things haven't worked out too well.

Three decades later, what we're realizing is that this shift from dedicated-contribution pension plans to voluntary private savings was a grand experiment with no assurances. Corporations definitely benefited, as they could redeploy capital to expansion or bottom line profits. But employees? The data certainly seems to show that the experiment did not take human nature into account enough – specifically, the fact that just because people have the option to save money for later use doesn't mean that they actually will.

First off, not every American worker (by far) is offered a 401k or similar retirement plan through work. But of those that are, 21% choose not to participate (source).

As a result, 1 in 4 of those aged 45-64 and 22% of those 65+ have $0 in retirement savings (source). Forty-nine percent of American adults of all ages aren't saving anything for retirement.

In 2016, the Economic Policy Institute published an excellent chartbook titled The State Of American Retirement (for those inclined to review the full set of charts on their website, it's well worth the time). The EPI's main conclusion from their analysis is that the switchover of the US workforce from defined-benefit pension plans to self-directed retirement savings vehicles (e..g, 401Ks and IRAs) has resulted in a sizeable drop in retirement preparedness. Retirement wealth has not grown fast enough to keep pace with our aging population.

The stats illustrated by the EPI's charts are frightening on a mean, or average, level. For instance, for all workers 32-61, the average amount saved for retirement is less than $100,000. That's not much to live on in the last decades of your twilight years. And that average savings is actually lower than it was back in 2007, showing that households have still yet to fully recover the wealth lost during the Great Recession.

But mean numbers are skewed by the outliers. In this case, the multi-$million households are bringing up the average pretty dramatically, making things look better than they really are. It's when we look at the median figures that things get truly scary:

Nearly half of families have no retirement account savings at all. That makes median (50th percentile) values low for all age groups, ranging from $480 for families in their mid-30s to $17,000 for families approaching retirement in 2013. For most age groups, median account balances in 2013 were less than half their pre-recession peak and lower than at the start of the new millennium.

(Source)

The 50th percentile household aged 56-61 has only $17,000 to retire on. That's dangerously close to the Federal poverty level income for a family of two for just a single year.

Most planners advise saving enough before retirement to maintain annual living expenses at about 70-80% of what they were during one's income-earning years. Medicare out-of-pocket costs alone are expected to be between $240,000 and $430,000 over retirement for a 65-year-old couple retiring today.

The gap between retirement savings and living costs in one's later years is pretty staggering:

  • Nearly 83% of retired households have less saved than Medicare costs alone will consume.
  • One-third of retired households are entirely dependent on Social Security. On average, that's only $1,230 per month a hard income to live on. (source)
  • 34 percent of older Americans depend on credit cards to pay for basic living expenses such as mortgage payments, groceries, and utilities. (source

As for Medicare, the out-of-pocket costs could easily soar over retirement. The Wall Street Journal reports that the current estimate of Medicare's unfunded liability now tops $42 Trillion. Such a mind-boggling gap makes it highly likely that current retirees will not receive all of the entitlements they are being promised.

And the denial being shown by baby boomers entering retirement is frightening. Many simply plan to work longer before retiring, with a growing percentage saying they plan to work "forever". 

But the data shows that declining health gives older Americans no choice but to leave the work force eventually, whether they want to or not. Years of surveys by the Employment Benefit Research Institute show that fully half of current retirees had to leave the work force sooner than desired due to health problems, disability, or layoffs.

Add to this the nefarious impact of the Federal Reserve's prolonged 0% interest rate policy, which has made it extremely hard for retirees with fixed-income investments to generate a meaningful income from them.

The number of Americans aged 65 years and older is projected to more than double in the next 40 years:

Will the remaining body of active workers be able to support this tsunami of underfunded seniors? Don't bet on it.

Especially since their retirement savings prospects are even more dim. With long-stagnant real wages and punishing price inflation in the cost of living, Generation X and Millennials are hard-pressed to put money away for their twilight years:

(Source)

Public Pensions: Broken Promises

And for those "lucky" folks expecting to enjoy a public pension, there's a lot of uncertainty as to whether they're going to receive all they've been promised.

Due to underfunded contributions, years of portfolio under-performance due to the Federal Reserve's 0% interest rate policy, poor fund management, and other reasons, many of the federal and state pensions are woefully under-captialized. The below chart from former Dallas Fed advisor Danielle DiMartino-Booth shows how the total sum of unfunded public pension obligations exploded from $292 billion in 2007 to $1.9 trillion by the end of 2016:

(Source)

And the daily headlines of failing state and local pension funds (Illinois, Kentucky, New JerseyDallas, Providence -- to name but a few) show that the problem is metastasizing across the nation at an accelerating rate.

Affording Your Future

The bottom line when it comes to retirement is that you're on your own. The vehicles and the promises you've been given are proving woefully insufficient to fund the "retirement" dream you've been sold your whole life.

That's the bad news.

But the good news is that the dream is still attainable. There are strategies and behaviors that, if adopted now, will make it much more likely for you to be able to afford to retire -- and in a way you can enjoy.

In Part 2: Success Strategies For Retirement, we detail out these best practices for a solvent retirement, including providing 14 specific action steps you can start taking right now in your life that will materially improve your odds of enjoying your later years with grace.

For far too many Americans, "retirement" will remain a perpetual myth. Don't let that happen to you.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

Trump's Zelenskyy deal falls apart: What happened and what's next?

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Trump offered Zelenskyy a deal he couldn’t refuse—but Zelenskyy rejected it outright.

Last Friday, President Donald Trump welcomed Ukrainian President Volodymyr Zelenskyy to Washington to sign a historic agreement aimed at ending the brutal war ravaging Ukraine. Joined by Vice President J.D. Vance, Trump met with Zelenskyy and the press before the leaders were set to retreat behind closed doors to finalize the deal. Acting as a gracious host, Trump opened the meeting by praising Zelenskyy and the bravery of Ukrainian soldiers. He expressed enthusiasm for the proposed agreement, emphasizing its benefits—such as access to Ukraine’s rare earth minerals for the U.S.—and publicly pledged continued American aid in exchange.

Zelenskyy, however, didn’t share Trump’s optimism. Throughout the meeting, he interrupted repeatedly and openly criticized both Trump and Vance in front of reporters. Tensions escalated until Vance, visibly frustrated, fired back. The exchange turned the meeting hostile, and by its conclusion, Trump withdrew his offer. Rather than staying in Washington to resolve the conflict, Zelenskyy promptly left for Europe to seek support from the European Union.

As Glenn pointed out, Trump had carefully crafted this deal to benefit all parties, including Russia. Zelenskyy’s rejection was a major misstep.

Trump's generous offer to Zelenskyy

Glenn took to his whiteboard—swapping out his usual chalkboard—to break down Trump’s remarkable deal for Zelenskyy. He explained how it aligned with several of Trump’s goals: cutting spending, advancing technology and AI, and restoring America’s position as the dominant world power without military action. The deal would have also benefited the EU by preventing another war, revitalizing their economy, and restoring Europe’s global relevance. Ukraine and Russia would have gained as well, with the war—already claiming over 250,000 lives—finally coming to an end.

The media has portrayed last week’s fiasco as an ambush orchestrated by Trump to humiliate Zelenskyy, but that’s far from the truth. Zelenskyy was only in Washington because he had already rejected the deal twice—first refusing Vice President Vance and then Secretary of State Marco Rubio. It was Zelenskyy who insisted on traveling to America to sign the deal at the White House. If anyone set an ambush, it was him.

The EU can't help Ukraine

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After clashing with Trump and Vance, Zelenskyy wasted no time leaving D.C. The Ukrainian president should have stayed, apologized to Trump, and signed the deal. Given Trump’s enthusiasm and a later comment on Truth Social—where he wrote, “Zelenskyy can come back when he is ready for peace”—the deal could likely have been revived.

Meanwhile, in London, over a dozen European leaders, joined by Canadian Prime Minister Justin Trudeau, convened an emergency meeting dubbed the “coalition of the willing” to ensure peace in Ukraine. This coalition emerged as Europe’s response to Trump’s withdrawal from the deal. By the meeting’s end, UK Prime Minister Keir Starmer announced a four-point plan to secure Ukrainian independence.

Zelenskyy, however, appears less than confident in the coalition’s plan. Recently, he has shifted his stance toward the U.S., apologizing to Trump and Vance and expressing gratitude for the generous military support America has already provided. Zelenskyy now says he wants to sign Trump’s deal and work under his leadership.

This is shaping up to be another Trump victory.

Glenn: No more money for the war machine, Senator McConnell

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Senator McConnell, your call for more Pentagon spending is as tone-deaf as it is reckless. The United States already spends more on its military than the next nine countries combined — over $877 billion in 2023 alone, dwarfing China ($292 billion), Russia ($86 billion), and the entire EU’s collective defense budgets. And yet here you are, clamoring for more, as if throwing cash at an outdated war machine will somehow secure our future.

The world is changing, Senator, and your priorities are stuck in a bygone era.

Aircraft carriers — those floating behemoths you and the Pentagon so dearly love — are relics of the past. In the next real conflict, they’ll be as useless as horses were in World War I. Speaking of which, Europe entered that war with roughly 25 million horses; by 1918, fewer than 10 million remained, slaughtered by machine guns and artillery they couldn’t outrun.

That’s the fate awaiting your precious carriers against modern threats — sunk by hypersonic missiles or swarms of AI-driven drones before they can even launch a jet. The 1950s called, Senator — they want their war plans back.

The future isn’t in steel and jet fuel; it’s in artificial intelligence and artificial superintelligence. Every dollar spent on yesterday’s hardware is a dollar wasted in three years when AI upends everything we know about warfare. Worse, with the Pentagon’s track record, every dollar spent today could balloon into two or three dollars of inflation tomorrow, thanks to the House and Senate’s obscene spending spree.

We’re drowning in $34 trillion of national debt — 128% of GDP, a level unseen since World War II. Annual deficits hit $1.7 trillion in 2023, and interest payments alone are projected to top $1 trillion by 2026.

This isn’t sustainable; it’s a fiscal time bomb.

And yet you want to shovel more taxpayer money into a Pentagon that hasn’t passed a single audit in its history? Six attempts since 2018, six failures — trillions unaccounted for, waste so rampant that it defies comprehension. It’s irresponsible — bordering on criminal — to suggest more spending when the DOD can’t even count the cash it’s got.

The real threat isn’t just from abroad, though those dangers are profound. It’s from within. The call is coming from inside the house, Senator — and not just the House, but the Senate too. Your refusal to adapt is jeopardizing our security more than any foreign adversary.

Look at China’s drone shows — thousands of synchronized lights painting the sky. Now imagine those aren’t fireworks but weaponized drones, each one cheap, precise, and networked by AI. A single swarm could cripple our planes, ships, tanks, and troops before we fire a shot. Ukraine’s drone wars have already shown this reality: $500 drones taking out $10 million tanks. That’s the future staring us down, and we’re still polishing Cold War relics.

Freeze every bloated project.

Redirect everything — every dime, every mind — toward winning the AI/ASI race. That’s the only battlefield that matters. We’ve got enough stockpiles to handle any foreseeable war in the next three years and a president fighting to end conflicts, not start them. Your plea for more spending isn’t just misguided — it’s a betrayal of the American people sinking under debt and inflation while you chase ghosts of wars past.

Or is it even that senator? Perhaps I have buried the lede, but I am not sure if the following stats will help people understand why this op-ed might have been written by someone in your office.

Your state, Kentucky is:

  • 45th in GDP Per Capita
  • 44th in Employment
  • 42nd in High School Diplomas

And 11th in Defense-related defense contract spending

Who are you actually concerned about, Senator? The safety of the American people or your war machine buddies?

Thanks, but no thanks.

'MAD AS HELL': Here's what happened with the Epstein Files and what's next

Andrew Harnik / Staff, SAUL LOEB / Contributor, Chip Somodevilla / Staff | Getty Images

Jeffery Epstein's despicable low-life clients escape justice yet another day.

If you followed last week's commotion surrounding the release of the Epstein Files closely, you likely came away from the situation feeling frustrated and confused. Many anticipated the full release of Epstein's damning evidence, with names and details that would bring the hammer of justice down on those who indulged their wicked desires on that infamous island. Instead, we were dealt another disappointment, vexed once more by the swamp creatures Trump swore to destroy.

Many have turned their frustration towards the ensemble of new media representatives, including Glenn's friend and BlazeTV host Liz Wheeler, who was among those chosen to break the story. But don't shoot the messenger, if you take a moment to hear Wheeler's side of the story as Glenn did on radio, it's clear that the party at fault is the same enemy we've been fighting the whole time: the Deep State.

While Trump has won back-to-back victories during his first few weeks in office, he hasn't even been president for two months yet. It should come as no surprise that the swamp is still full of monsters, and they are starting to fight back. The events surrounding the release of the Epstein Filesprove there is still a lot of work left to do.

What happened?

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To fully understand last week's events, we need to go back to an interview Trump's new attorney general, Pam Bondi, did with Fox on Wednesday, February 26th. On the night of the 26th, Bondi sat down with Fox News host, Jesse Watters, where she first announced that the next day, Thursday the 27th, she would be releasing the long-awaited Epstein Files, and even made hints that the contents would be of interest, saying they would "make you sick."

The next morning, Liz Wheeler and other "new" media hosts were summoned to the White House, though they did not know why at the time. No mainstream reporters were present and Wheeler speculates that the purpose behind that was to deny them this story in retribution for Trump's poor coverage. Then Bondi and Kash Patel, the new director of the FBI, came in with the now-infamous binders, along with a letter Bondi had written to Patel and informed the reporters of the bad news. They told them that the binders contained what they had previously believed to be the full Epstein Files, until Bondi received information from a FBI whistleblower. This allegedly happened after her interview on Fox, and revealed that the United States District Court for the Southern District of New York (SDNY) and the FBI had withheld large portions of the Epstein Files from both Bondi and Patel.

After this meeting, the reporters were let out of the White House where they were ambushed by the mainstream media. Believing that they were going to immediately break the news, the new media reporters smiled and waved, gloating their exclusive access to the story while their antiquated counterparts took photos. Then the new media reporters learned that the White House forbade them from breaking the news until 3:30 pm EST, to avoid Trump's conference with the UK Prime Minister from being focused solely on the Epstein Files story. This explains why Liz Wheeler and her fellow media representatives were silent for so long. It was a bait-and-switch that they never intended.

What did we learn?

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While initially this seems like a complete bust, there is new information we learned from this fiasco.

First, there was some new information in the binders, although a large portion of it was information we already knew. There was a copy of Epstein's Rolodex, essentially his contact list, which contained many of the same names we already knew had associated with Epstein in some capacity, though it's certainly not proof of any wrongdoing. The biggest reveal was a long list of known victims of Epstein and his degenerate client, although it was entirely redacted to protect the privacy of those on the list. This list was, allegedly, what Bondi was referring to on the Wednesday Fox interview, although Bondi's exact timeline is unclear and potentially suspicious.

The real takeaway from yesterday came from the letter Bondi sent Patel in response to the FBI leak. Not only did it prove our suspicions right, that this story is much deeper than we are being led to believe, but it reveals blatant betrayal within the government. The letter from Bondi orders Patel to knock some heads, get the real files, and compile a report highlighting who is hiding these files from Trump, Bondi, Patel, and the American people.

There are Deep State swamp creatures that are actively working against President Trump and his administration. Glenn likened this to aninternal Civil Warand encouraged Trump to take an axe to the whole system. We need to pull out this corruption root and stem.

What needs to happen next?

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The next step is learning what Kash Patel found when he started knocking heads. According to Bondi's letter, the full Epstein Files and Patel's report were due on her desk by 8:00 AM February the 28th. The American people need to know what he found and soon. We have waited long enough.

There also needs to be immediate and hard-hitting action taken against SDNY, the corrupt FBI agents, and whoever else seeks to undermine Trump's presidency. Really, this should not come as a surprise, Trump has been in office for less than two months. That is a very short time to completely uproot the Deep State which has been twisting its corruption around every branch of our government for the better part of a century.

This is the first major hiccup of Trump's second term, amid nearly two months of victory after victory, and if anything proves the validity of DOGE's work gutting the government. While we can't let this slide, now is not the time to abandon hope, now is the time to double down and demand answers.

DOGE's top 5 BIGGEST cuts

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President Trump has only been in office for a month, and already, he seems to have accomplished more than most presidents do in their entire careers.

Nothing defines Trump's first month more than the newly established Department of Government Efficiency, or DOGE. Equally controversial as it is popular, the department, headed by tech billionaire Elon Musk, has made it its mission to root out wasteful government spending. DOGE has already combed through a handful of agencies and eliminated billions of dollars of waste, and it doesn't show any signs of slowing down anytime soon.

DOGE is part of Trump's initiative to curb runaway government spending and to start to chip away at the Fed's crushing debt. At the time this article was written, U.S. debt sat at over $36 trillion, with an estimated $1.9 trillion a year federal budget deficit. According to the U.S. debt clock, Musk and the DOGE crew have already saved more than $136 billion, and that number only keeps growing.

To help track DOGE's progress, we've assembled a list of their top five biggest cuts:

1. USAID

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The United States Agency for International Development, or USAID, has been hit with the some of largest cuts out of any government agency and will potentially even be shut down. This comes after Musk and his team revealed theabsurd things USAID was funding, including a transgender opera in Colombia. The total cut came out to approximately $6.5 billion.

2. Department of Education

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The Department of Education is another agency that faces extinction, much like USAID. The American school system has been found seriously lacking, with many students struggling to meet expectations despite the torrent of cash spent on education. Trump's new Secretary of Education pick, Linda McMahon, has sworn to turn the agency around and even oversee the closure of the department. DOGE has reportedly cut almost $1 billion in waste within the agency.

3. Institute of Educational Sciences

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The IES, or Institute of Educational Sciences, is tasked with tracking the academic progress of America's students and helping improve outcomes. The changes made by DOGE will not affect NAEP, also known as "The Nation's Report Card," and the College Scorecard, which tracks the spending, costs, and outcomes of universities. The agency was all but gutted by Musk's deep cuts, totaling $900 million.

4. Social Security Administration

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For years, we've speculated that the Social Security Administration was a colossal waste of resources, but after Elon Musk posted a screenshot from the SSA database showing that there was a significant number of people over the age of 100 that were still consideredalive by the agency, it seems our suspicions are proved true. It's no small wonder Musk was able to trim over $230 million from the SSA.

5. General Services Administration

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The GSA is the latest agency to be hit by the DOGE crew. The administration, which manages federal property and contracts, has started a massive "reduction in force" push, thinning the numbers of employees by a large margin. As of yet, upwards of $300 million have been cut by the once-bloated agency.