Bridging the Gap: The Mediating Role of Satisfaction in Shaping Perceptions of the National Pension Scheme (NPS)

Abstract

This study addresses the limited active engagement with the National Pension Scheme (NPS) in India despite widespread enrollment. It examines how psychological and scheme-related factors—awareness, scheme attractiveness, institutional trust, and risk aversion—affect employee satisfaction, which in turn shapes overall perception. Using a combined theoretical framework of Expectation-Confirmation Theory (ECT) and the Theory of Planned Behaviour (TPB), 342 state-sector employees in Karnataka were surveyed using a cross-sectional design. PLS-SEM analysis showed that satisfaction was positively influenced by awareness, scheme attractiveness, and institutional trust, but negatively by risk aversion. Satisfaction fully mediated the effects of institutional trust and risk aversion, and partially mediated awareness and scheme attractiveness. These findings highlight the importance of creating positive user experiences to translate attitudes into lasting perceptions. The study offers policy implications for user-focused interventions and contributes empirically to theoretical models of mediation in public financial schemes.