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An analysis of determinants of individual's pension purchase using structural equation model
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 Title & Authors
An analysis of determinants of individual's pension purchase using structural equation model
Lee, Chanhee; Chun, Heuiju;
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 Abstract
This study empirically analyzes casual relationships among psychological and financial factors influencing the subscription of individual pension and identifies mediation effect by the structural equation model. The analysis based on survey data (N=928) from common people living in the seven major cities in Korea shows that potential longevity, coping efficacy to the financial risks from longevity, subjective knowledge on longevity (cognitive factor), trust in insurers (social factor), and financial literacy(financial factor) are key players exercising direct influence over the subscription of individual pension. It also has been shown that affect on longevity, potential longevity, trust in government, and coping efficacy influence the emotions on longevity, fear and worry, and emotions on longevity are not significant in explaining the subscription of individual pension. Trust in insurers and financial knowledge of prospects have also been reaffirmed to be crucial factors in the activation of individual pension subscription.
 Keywords
Coping efficacy;financial literacy;individual pension;knowledge;potential longevity;SEM;trust;
 Language
Korean
 Cited by
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