What is the focus of the paper?

The paper investigates the extent to which Dutch people actively avoid pension information, and the reasons behind this behavior.

What are the main findings? 

The sample reveals that about one in five Dutch individuals aged 30 to 66 reports actively avoiding pension information. This avoidance is mainly due to a lack of financial literacy but it is also influenced by pension-related worries or fears and a lack of trust in pension-related institutions (including pension funds, the government, insurance companies, and the regulator DNB). Socio-demographic characteristics also play a role in the avoidance behavior:

  • women are more likely to avoid pension information than men;
  • older adults (50 years and above) show less avoidance behavior than younger and middle-aged individuals;
  • self-employed individuals and those outside the workforce are more likely to avoid pension information as compared to employees;
  • higher-educated individuals (with higher vocational or university degrees) show less information avoidance than those with lower educational levels.

What are the implications? 

The Dutch pension landscape is changing due to upcoming pension reforms, the changing job market and an aging workforce. Therefore, it is crucial for pension participants to be informed about their current and future pension situation. However, even with correct and complete information, active avoidance of pension information can negatively impact pension outcomes. Those who avoid such information miss opportunities to take action to improve their pension outcomes (e.g., saving more, working longer, or seeking financial advice). The increasing complexity of pension schemes and options may even unintentionally lead to an increase in the number of people who tend to avoid information rather than decrease it