Trust and retirement preparedness: Evidence from Singapore

Benedict S.K. Koh, Olivia Mitchell and Joelle H. Fong

The Journal of the Economics of Ageing, 2021, vol. 18, issue C

Abstract: Trust is an essential component of any financial system, and distrust can undermine savings and economic growth. Our study draws on the Singapore Life Panel to assess how trust ties to older respondents’ (1) pension plan participation and withdrawals; (2) life, health, and long-term care insurance holdings; and (3) stock market engagement. We show that the widely-used ‘trust in people’ question is uncorrelated with household behaviours related to retirement preparedness. Instead, trust in private and public financial representatives is positively associated with pension savings, investments, and insurance holdings. Financial literacy also plays an important and consistent role in retirement decision-making.

Keywords: Financial literacy; Trust; Investment; Saving; Household portfolios; Retirement; Pension; Central provident fund (search for similar items in EconPapers)
JEL-codes: D14 E21 G11 J32 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2212828X20300487

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:joecag:v:18:y:2021:i:c:s2212828x20300487

DOI: 10.1016/j.jeoa.2020.100283

Access Statistics for this article

The Journal of the Economics of Ageing is currently edited by D.E. Bloom, A. Sousa-Poza and U. Sunde

More articles in The Journal of the Economics of Ageing from Elsevier
Bibliographic data for series maintained by Catherine Liu ().