A research report argues that even defined contribution (DC) plan participants in plans with a default investment do not have the financial acumen to know whether the default is right for them or whether they should opt out.
A large majority of those who answer questions on a financial quiz correctly are more likely to save for retirement.
The Center for State & Local Government Excellence notes that with many local governments shifting benefits decisions to workers, those workers need help understanding finance basics.
The researchers say their results imply that it may be useful to facilitate decision making, particularly among the less-educated, as well as to facilitate people committing to and carrying out long-term financial decisions.