Why more knowledge does not mean better decision making
Excerpt ( via Nudge)
The Center for Retirement Research at Boston College releases an interesting new paper reminding us why more knowledge does not automatically mean better decision making. The paper looks at how annual social security statements affect people’s knowledge about social security and their decision about when to take it.
In short, it appears that the Statement does not improve individuals’ responsiveness to retirement incentives. This result could mean that people are behaving optimally before they receive the Statement or that the benefits they gain from reading the Statement are relatively small. Further research in this area is needed.