Ideas of India Renuka Sane on Regulatory Frameworks, Rule of Law, and Pensions Reforms in India
Jan 15, 2026
Renuka Sane, Managing Director of TrustBridge and an esteemed economist, dives deep into India's pension landscape and regulatory frameworks. She explains the strengths and weaknesses of defined benefit versus defined contribution systems, critiques the Unified Pension Scheme, and highlights the challenges of expanding pensions to informal workers. The conversation also touches on the importance of regulatory transparency, especially with the Reserve Bank of India, and how well-structured rules can enhance market function and consumer protection.
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Why India Moved To Funded Pensions
- Pensions shift from pay-as-you-go to defined-contribution to manage fiscal strain and longer lifespans.
- Defined-contribution moves investment risk to individuals while defined-benefit concentrates fiscal risk on governments.
Different Risks For Different Pension Models
- Defined-benefit systems expose governments to long-term fiscal and political risks like delayed payments or retirement-age changes.
- Defined-contribution systems expose individuals to market risk and timing-of-retirement shocks.
Mitigate Investment Risk With Design Choices
- Reduce equity exposure and shift to fixed income as people age to lower retirement-timing risk.
- Prefer passive investment strategies to improve net returns and reduce costs over active management.
