The making and breaking of trust in pension providers: An empirical study of pension participants

Harry van Dalen, Kene Henkens

Research output: Contribution to journalArticleScientificpeer-review

Abstract

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 their trustworthiness. First, 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.
LanguageEnglish
Pages473-491
JournalGeneva Papers on Risk and Insurance: Issues and Practice
Volume43
Issue number3
DOIs
StatePublished - 20 Jun 2018

Fingerprint

Empirical study
Pensions
Pension funds
Insurance companies
Integrity
Private pensions
Trustworthiness
Empirical analysis
Benevolence
Transparency
Propensity
The Netherlands

Keywords

  • Trust
  • Pension
  • Pension funds
  • stability
  • integrity
  • transparancy

Cite this

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abstract = "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 their trustworthiness. First, 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.",
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The making and breaking of trust in pension providers : An empirical study of pension participants. / van Dalen, Harry; Henkens, Kene.

In: Geneva Papers on Risk and Insurance: Issues and Practice, Vol. 43, No. 3, 20.06.2018, p. 473-491.

Research output: Contribution to journalArticleScientificpeer-review

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