Today is Flag Day.

A moment to celebrate the American spirit and the values our flag represents: unity, perseverance, and hope for the future. In 2025, that hope extends beyond patriotic ceremonies to something equally foundational - the financial security of Americans.

As we wave the Stars and Stripes, it’s worth reflecting on how securing retirements is as patriotic as apple pie. After all, a financially secure populace strengthens the nation’s future. And guess who are on the frontlines of this mission? The unsung heroes called Third Party Administrators (TPAs). They may not get parades, but TPAs are quietly empowering Americans to build nest eggs and enjoy dignified retirements. Truly “star-spangled” work if you ask me.

The Financial Literacy Gap: A National Challenge

First, let’s acknowledge the elephant in the room: financial literacy (or lack thereof).

Most Americans, bless their hearts, aren’t exactly whizzes with personal finance. In fact, financial literacy in the U.S. has been hovering around only 50% for years. Translation: about half of U.S. adults can’t answer basic money questions, and likely confuse 401(k) with 401,000. Only 30% could correctly answer three simple finance questions in one study. This knowledge gap means many people don’t know how much to save, how to invest, or even how compound interest works. It’s no surprise, then, that 40% of Americans have no retirement savings account at all. And even among those who do, confidence is shaky. Surveys show nearly 51% of Americans worry they’ll run out of money in retirement, and 70% of retirees wish they’d started saving earlier.

Ouch.

Clearly, we have a literacy and preparedness problem, and that’s where TPAs and effective retirement plans come into play.

U.S. Retirement Savings: From ERISA to Today

Let’s take a quick trip down memory lane.

In the dark ages (pre-1974), private pensions were a Wild West. Some workers lost pensions due to underfunding or mismanagement, prompting Congress to pass ERISA (Employee Retirement Income Security Act) in 1974 as the new sheriff in town. Post-ERISA, the retirement landscape transformed dramatically. Back in 1975, private defined-benefit pensions made up 37% of U.S. retirement assets (about $185 billion – groovy, right?).

Flash forward to today: Americans’ retirement assets have ballooned to roughly $38 trillion, but the mix changed. Traditional pensions now account for only 8.3% of those assets (around $3.2 trillion), while defined-contribution plans like 401(k)s have become king. In 1979, a whopping 87% of full-time workers at large firms had a retirement plan – typically a pension. These days, it’s 401(k) plans and IRAs ruling the roost, putting more responsibility on individuals to save and invest.

The good news: millions more Americans are participating in retirement plans than pre-ERISA. The bad news: a lot of folks are still on the sidelines. An estimated 56 million private-sector workers - over one-third of that workforce - don’t have any workplace retirement plan available. That’s a huge coverage gap that TPAs are on a mission to close, through innovative plan solutions and easier administration.

Private Plans as Public Heroes

Why does all this matter for America’s future? Because a strong private retirement system is like a pressure relief valve for Uncle Sam.

Every dollar Americans save in a 401(k) or IRA is one less dollar they might need from government programs down the line. Social Security is a critical safety net, but it’s under stress. The trust fund for retirement benefits could run dry by around 2033 if nothing changes. Already, Social Security is paying out huge sums (about $1.4 trillion in 2023, roughly 22.5% of federal spending), and over 73 million people (1 in 5 Americans) receive benefits. Without adequate private savings, that burden will grow heavier. In fact, if Americans don’t save more, taxpayers could be on the hook for an extra $1.3 trillion by 2040 to support those who can’t afford retirement.

Yikes. That’s the opposite of a patriotic outcome.

The private retirement industry: plan sponsors, TPAs, record-keepers, financial advisors, ERISA attorneys, plan auditors, technology solutions providers - collectively helps individuals build personal nest eggs, which eases pressure on government budgets and Social Security.

It’s a classic win-win: individuals gain security, and public programs catch a break. As Pew Charitable Trusts put it, insufficient retirement savings isn’t just a personal problem, it “hurts retirees and taxpayers alike”. By helping workers save today, TPAs are effectively safeguarding America’s long-term fiscal health.

Less strain on social programs means more resilience for the country as a whole.

TPAs: Unsung Heroes of America’s Financial Future

So, on this Flag Day, let’s give a salute to the TPAs out there.

You’re the quiet custodians of the American dream, ensuring that when Old Glory waves over future generations, it waves over a financially secure nation. Every time you help a small business set up a 401(k), or guide a participant through a hardship withdrawal, or ensure compliance with ever-changing regulations, you’re strengthening the fabric of America’s future. And you’re not alone. 150 million+ Americans are counting on private-sector benefit plans (retirement, health, etc.) that the Department of Labor’s EBSA oversees.

That’s nearly half the country depending on the work you do behind the scenes!

Together Towards a Brighter Future

Now, here’s the inspiring part: you don’t have to carry this weight alone.

Stax.ai is here to lighten the load and amplify your impact.

Our mission is simple yet bold: empower retirement plan TPAs with AI-driven automation. Think of it as giving TPAs their very own superpower (minus the cape - actually, we'll ship you a cape upon request. You deserve it.).

By streamlining tedious workflows and compliance tasks, Stax.ai frees TPAs to focus on what really matters – helping more Americans save for the future. “Empower TPAs. Unleash Potential.” isn’t just a tagline.

It’s our rallying cry.

With our AI-powered platform automating the drudgery (think endless census files, compliance tests, and transaction reconciliations), you can focus on strategy and service.

The result?

More workers reached, more plans optimized, and more Americans on track for the retirement they deserve. We firmly believe that when TPAs have cutting-edge tools, their capacity to change lives skyrocket.

Imagine empowering twice as many people to retire comfortably. That’s the leverage technology can provide. Together, we’ll weave a future where every American can retire with dignity and pride. That’s something to celebrate – not just on Flag Day, but every day. 🇺🇸

Happy Flag Day, and here’s to forging a financially strong America - one retirement plan at a time. 🎉

Sources and Citations

• https://www.weforum.org/stories/2024/04/financial-literacy-money-education

• https://www.investopedia.com/40-of-americans-don-t-have-retirement-savings-heres-how-experts-suggest-you-start-11749269

• https://www.pew.org/en/about/news-room/opinion/2024/10/24/millions-of-americans-are-falling-behind-on-their-retirement-goals

• https://www.pietragallo.com/business-blog/erisa-a-journey-from-a-promise-of-protection-to-a-retirement-crisis-50th-anniversary-edition

• https://www.bls.gov/opub/mlr/2024/article/erisa-at-50-bls-tracks-the-evolution-of-retirement-benefits.htm

• https://www.pewresearch.org/short-reads/2025/05/20/what-the-data-says-about-social-security

• https://content.govdelivery.com/accounts/USDOL/bulletins/1571a75