New Center for Financial Literacy
The U.S. Social Security Administration has awarded the Center for Retirement Research (CRR) a $3 million grant to establish a Center for Financial Literacy. As part of the administration’s Financial Literacy Research Consortium (FLRC), the new center will produce educational materials and programs to help Americans plan for a secure retirement. Alicia H. Munnell, Peter F. Drucker Professor of Management Sciences and CRR director, CRR Program Director Steven Sass, and CRR Creative Director Ronn Campisi will lead the center.
Through five-year cooperative agreements with research centers at Boston College, the RAND Corporation, and the University of Wisconsin, the FLRC aims to provide working Americans, retirees, and traditionally underserved populations with resources to better plan for the future.
The grant stipulates that in its first year the center will produce guides to financial issues facing retirees, Web-based interactive programs to help older workers choose a target retirement age, and commitment programs to help low- and moderate-income households control their finances, among other solutions to improve Americans’ financial literacy.
To produce the educational materials and programs, the Center for Financial Literacy will work with a group of affiliate institutions that includes the National Bureau of Economic Research, The Brookings Institution, the College of William and Mary, Innovations for Poverty Action, Financial Engines, Knowledge Networks, and the National Endowment for Financial Education.
“Given the turbulent economic climate and the shift of financial risk to individuals, people need help,” said Alicia Munnell. “The new Center will provide essential tools to improve decision-making.”