NBER Retirement and Disability Research Center Closes

The National Bureau of Economic Research Retirement and Disability Research Center has officially closed after 22 years of research activity. The closure comes as a result of cuts to the Social Security Administration’s research funding, announced in February.

The cuts resulted in about $15 million dollars in cost savings, according to information released by the SSA in February.

The final issue of the Bulletin on Retirement and Disability published on July 23. The ultimate issue included research that COVID-19 reduced Social Security’s liabilities by $156 billion because of pandemic-related deaths.

In February, the SSA stated that “terminating our RDRC cooperative agreements aligns with President [Donald] Trump’s priorities to end fraudulent and wasteful initiatives and contracts” and that shuttering the center’s doors continues “a focus on research addressing DEI in Social Security, retirement, and disability policy.”

As a result, all the center’s funding was cut, not just funding for research related to diversity, equity and inclusion. The cuts will affect retirement research at several institutions, including: the University of Wisconsin-Madison, Boston College, the National Bureau of Economic Research, the University of Maryland Baltimore County, the University of Michigan and Baruch College.

Founded in 2003 as the NBER Retirement Research Center, the center often produced policy-relevant research that informed Social Security discussions in Washington and beyond. Its work ultimately encompassed more than 400 research projects.

Jeff Brown, a finance professor at the University of Illinois, who was involved with the center from its beginning and previously served as its director, says closing the center will reduce the flow of ideas, insights and analysis.

 “The work produced by researchers affiliated with the NBER was very impactful. Most of the papers that were supported through this center were very rigorous, high quality and contributed to our understanding of the economic impact of all facets of our retirement and disability system in the U.S.—not just Social Security, but also 401(k)s, defined benefit plans and so much more,” Brown says. “The good news, however, is that the body of research that was created during the center’s existence will continue to inform policymakers for many years to come. This is especially important given the impending need to address Social Security’s financial shortfalls and the ongoing changes in the private retirement plan space.”