From trust to retirement preparedness: the mediating role of financial behavior and financial resilience

Population ageing and demographic shifts in the European Union are placing increasing strain on traditional pension systems, shifting greater responsibility to individuals to ensure their own retirement preparedness. In this context, identifying factors that strengthen individuals’ confidence in their retirement readiness has become increasingly important. This study examines the role of trust in financial advisors in shaping retirement preparedness and investigates a serial mediation mechanism through financial behavior and financial resilience. Drawing on the financial capability framework, the study emphasizes the importance of behavioral and capacity-building processes that translate trust into improved retirement outcomes. Using a large-scale dataset from European Union member states, the proposed relationships are empirically tested using PROCESS Model 6. The results show that trust in financial advisors is positively associated with retirement preparedness, both directly and indirectly through financial behavior and financial resilience. By integrating trust, financial behavior, and resilience into a unified analytical framework, this study contributes to the literature on household finance and retirement planning. The findings also offer practical implications for policymakers and financial service providers seeking to improve retirement readiness in ageing societies.