Publication Type
Journal Article
Version
submittedVersion
Publication Date
2-2021
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
Trust, Central provident fund, Financial literacy, Household portfolios, Investment, Pension, Retirement, Saving, Singapore
Discipline
Asian Studies | Finance | Finance and Financial Management
Research Areas
Finance
Publication
Journal of the Economics of Ageing
Volume
18
First Page
1
Last Page
10
ISSN
2212-828X
Identifier
10.1016/j.jeoa.2020.100283
Publisher
Elsevier
Citation
KOH, Benedict S. K.; MITCHELL, Olivia S.; and FONG, Joelle H..
Trust and retirement preparedness: Evidence from Singapore. (2021). Journal of the Economics of Ageing. 18, 1-10.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6611
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jeoa.2020.100283