FROM THE OFFICE OF PUBLIC AFFAIRS

U.S. Treasury Assistant Secretary for Financial Institutions Wayne A. Abernathy today formally recognized the Cedar Point Federal Credit Union’s Retirement Education Program, RETIREMENT… Do You Have A Plan? with an honorary certificate of recognition for their efforts in providing financial education to the community of Lexington Park, MD.

“The Cedar Point Federal Credit Union Retirement Education Program is helping potential retirees learn proactive ways to plan for their future,” said Assistant Secretary Abernathy.  The transition from work to retirement comes with emotional adjustments and financial concerns. Financial education can help older adults budget and plan, avoid scams and other forms of financial abuse, and use proceeds from lump-sum or other payments wisely. People can afford retirement with determination, hard work, a sound savings habit, and a well-designed financial plan.

**Statistics show that workers employed by firms that offer financial education programs have higher participation rates in and contributions rates to 401(k) plans compared to firms that do not provide these programs. A lack of financial education may cause workers to start saving too late in life to realize they understated retirement goals.  Individuals who do not plan for retirement have lower net wealth and are less likely to invest in assets with higher expected returns.

Cedar Point Federal Credit Union is a member owned financial institution dedicated to providing its sponsor, charter members, and potential members in the local community with product and service excellence.  This commitment is what led them to establish their wholly owned subsidiary company Cedar Point Financial Services, Inc. (CPFS).  CPFS was originally established to educate credit union members and potential members.  Through the relationship CPFS has with Horner Townsend and Kent, Inc. the credit union is able to provide the local community with access to high quality educational tools to include no-cost, retirement-planning seminars. The seminars are presented by William D. Morrison, CFP of Maryland Agency Financial Group (MAFG), a branch office of Penn Mutual Life Insurance Agency, located in Towson Maryland

The Treasury Department in 2002 established the Office of Financial Education to strengthen the financial literacy of all Americans, and to provide guidance to organizations providing financial

* (Robert Clark, Ann McDermed, Kshama Sawant, and Madeleine d’Ambrosio, “Financial Education and Retirement Savings,” Federal Reserve Bank Paper, March 2003)

 education programs. The Office works to ensure that people can gain the practical knowledge and skills necessary to make informed financial choices throughout various life stages. It focuses on four key areas: basic savings, credit management, homeownership and retirement planning. More information can be found at www.treasury.gov/financialeducation