The Making and Breaking of Trust in Pension Providers

TY - UNPB

T1 - The Making and Breaking of Trust in Pension Providers

AU - van Dalen, H.P.

AU - Henkens, K.

PY - 2017

Y1 - 2017

N2 - Trust in pension institutions is pivotal in making pension decisions, like saving or enrolling in pension programs. But which traits of pension institutions matter in making or breaking trust in providers like pension funds, banks or insurance companies? This paper presents an empirical analysis of the underlying forces of trust in private pension providers in the Netherlands. Based on a large-scale survey among pension participants, we show that the perceived integrity, competence, stability, and benevolence of pension providers matter in assessing the trustworthiness of pension providers. Pension funds are more trusted than banks or insurance companies, a difference that is primarily related to weights attached to perceived levels of integrity and stability. Second, higher educated participants have a significantly higher propensity to trust pension providers than lower educated. Third, transparency as perceived by participants plays virtually no role in establishing trust.

AB - Trust in pension institutions is pivotal in making pension decisions, like saving or enrolling in pension programs. But which traits of pension institutions matter in making or breaking trust in providers like pension funds, banks or insurance companies? This paper presents an empirical analysis of the underlying forces of trust in private pension providers in the Netherlands. Based on a large-scale survey among pension participants, we show that the perceived integrity, competence, stability, and benevolence of pension providers matter in assessing the trustworthiness of pension providers. Pension funds are more trusted than banks or insurance companies, a difference that is primarily related to weights attached to perceived levels of integrity and stability. Second, higher educated participants have a significantly higher propensity to trust pension providers than lower educated. Third, transparency as perceived by participants plays virtually no role in establishing trust.

KW - trust

KW - pension

KW - stability

KW - integrity

KW - transparency

M3 - Working paper/Discussion paper

T3 - Netspar Discussion Papers

BT - The Making and Breaking of Trust in Pension Providers

PB - Network for Studies on Pensions, Aging and Retirement (NETSPAR)

CY - Tilburg

ER -