Trust and Retirement Preparedness: Evidence from Singapore Benedict Koh, Olivia S. Mitchell, and Joelle H. Fong February 8, 2019 PRC WP2019-3 Pension Research Council Working Paper Pension Research Council The Wharton School, University of Pennsylvania 3620 Locust Walk, 3000 SH-DH Philadelphia, PA 19104-6302 Tel.: 215.573.3414 Fax: 215.573.3418 Email:
[email protected] http://www.pensionresearchcouncil.org The authors acknowledge excellent programming assistance from Yong Yu and the Singapore Life Panel (SLP®) team at Singapore Management University, as well as the RAND SLP® team. The research was supported by the Singapore Ministry of Education Academic Research Fund Tier 3 grant (MOE2013-T3-1-009) at the Singapore Management University, the MOE Start-up Grant at the National University of Singapore, and the Pension Research Council/Boettner Center at The Wharton School of the University of Pennsylvania. All opinions are solely those of the authors. © 2019 Koh, Mitchell and Fong. All rights reserved. 1 Trust and Retirement Preparedness: Evidence from Singapore Benedict Koh, Olivia S. Mitchell, and Joelle H. Fong Abstract Trust is an essential component of the financial system, and distrust can undermine saving and economic growth. Accordingly, prior research has shown that survey responses to a question about ‘trust in people’ are associated with household willingness to invest in the stock market. Nevertheless, little is known about how trust shapes economic behaviors predictive of retirement preparedness. Our study draws on the Singapore Life Panel (SLP®), a high-frequency internet survey of people age 50-70, to assess how trust ties to older respondents’ (1) pension plan participation and withdrawals; (2) life, health and long-term care insurance purchases; and (3) stock market engagement.