Can private pensions be trusted? A cross‐national review

Purpose – For much of the scholarly literature regarding retirement, private pensions are incapable of engaging the trust of those who depend on them. However, this appraisal is flawed by its one‐dimensional emphasis on the importance of social solidarity to trust. The purpose of this paper is to develop an assessment of the private sector against a broader range of contingencies that may impact on public confidence in pensions. Design/methodology/approach – This task is approached by reporting the findings of a cross‐national comparative study of existing mandated private pension provision. The country‐specific arrangements are compared in terms of the programme design requirements of six trust benchmarks. Findings – A reliance on the private sector is not necessarily incompatible with trust in retirement provision. Its trust‐enhancing potential is exemplified by the design of mandated private pensions in Switzerland and the UK. Research limitations/implications – Programme design is not the only important influence on public confidence in pensions. Furthermore, the weighting of the benchmarks and their corresponding design features needs further consideration. Practical implications – The evaluation provides a foundation for cross‐national policy learning and transfer, by highlighting elements of the design of mandated private pensions that are compatible with trust. Originality/value – Unlike much of the scholarly work in this field, the assessment defines and operationalises trust in terms of a comprehensive range of contingencies that may impact on public confidence in pensions. Building on this foundation, it provides the first cross‐national review of the capacity of private pensions to build and sustain trust.