Pension monitor: understanding causes and consequences of trust in pension institutions

Trust is a key asset for pension providers as the products and services they provide involve the act of people parting with their money in exchange for promises that cover a lifetime. Uncovering trust in pension institutions comes at a crucial point in time as the Dutch pension system is in a state of flux. The government has initiated fundamental reforms in response to population ageing and changing labour markets.

An important question is if and how these policy changes affect trust in pension institutions. Research findings offer pension practitioners feedback and lessons on how policies and reforms are viewed by participants and what factors bolster trust in pension institutions. To examine the development of trust, its underlying determinants and consequences we will collect longitudinal data by means of the LISS panel. This is a core element in the project. Based on this database we will uncover how changes in trust affect individual actions relevant in the pension domain.

In the current project we will extend and deepen knowledge on trust in pension institutions along the following lines: understanding (1) trends in trust in different actors in the pension system; (2) underlying determinants of trust; (3) the dynamics of trust at the level of the individual; and (4) the consequences of trust.

In the latter subproject we want to examine how changes in trust affect (a) pension savings; (b) work and retirement decisions; (c) investment choices in case participants are allowed to invest (part of) their accumulated pension wealth; and (d) decisions to consult pension advisors to make financial plans related to retirement.

Read all project publications here.