Retirement center gets $2.8 million

With busy lives and bright futures ahead of them, retirement is probably the last thing on most Boston College students' minds. Yet for at least a small segment of the BC community, the subject of retirement is a crucial one.

The Center of Retirement Research at BC is one of the premier institutions in the nation for studying retirement issues as diverse as social security, 401(k) plans, and human lifespan. The U.S. Social Security Administration established the center in 1998 through a five-year grant and has contributed $19.2 million to the organization to date. According to a recent press release, the center received $2.8 million in funding from the Social Security Administration this year, which matches last year's record amount.

Alicia H. Munnell, the center's director, said that the new award "underscores the Center's continuing success in conducting high-caliber research and broadly disseminating the results.

"The additional funding will allow us to explore new areas of research and continue our success in advancing the national dialogue on retirement policy," Munnell said.

The money will have to go a long way. The center started out with just four full-time staff members but has now expanded to 17. Depending on the semester, the staff may also include anywhere from five to 10 undergraduate and graduate research assistants. The center allows BC to offer competitive grant programs and conduct original research on retirement issues. Each year, the center provides grants to seven junior faculty members through the Steven H. Sandell Grant Program. Doctoral candidates have the opportunity to receive one of six Dissertation Fellowship Grants.

The Center for Retirement Research also collaborates on projects with other institutions such as the Massachusetts Institute of Technology, Syracuse University, and the Brookings Institute. To tie everything together, the center holds a conference every August in Washington, D.C.

The center distributes its research to various scholars, government agencies, media outlets, and financial services. To communicate its findings to the public, the center releases its research on its Web site and in print publications available at its office at Hovey House. One resource is the Issue in Brief, which highlights issues studied by researchers and presents the information in a concise but comprehensive format for lay audiences. Another notable publication by the center is the Social Security Fix-It Book, a short illustrated booklet that presents the problems facing Social Security and proposals to solve them in an easy-to-read manner.

Since its inception, the center has attracted a lot of attention. Its work has been cited by The New York Times, the Chicago Times, and ABC News, among other media outlets. It has also drawn interest from financial institutions that are becoming increasingly interested in the topic of retirement. Andrew Eschtruth, associate director of external relations at the center, says this "unique resource" has not only drawn attention to the center itself, but also to BC. "We're proud of the record we've created," he said.

While parents will most likely be more interested in the center's specific findings, students should pay attention as well. Eschtruth gave an example that will particularly interest seniors headed into the workforce next year: The recent Pension Protection Act calls for the creation of automatic 401(k) accounts for employees. This is especially beneficial for young people because they are less likely to fill out the necessary paperwork when they start working.

"If you wait 10 years, you'll be behind the curve," Eschtruth said. "Social Security was never intended to be the sole source of income in retirement." Eschtruth advises new graduates to put money into a 401(k) account as soon as they join a company. "It hits you as soon as you get out of college … or it won't," he said. The center tries to help people avoid the latter scenario by keeping them informed. With the recent addition of government funds, it just got a little easier.