04 February 2026
5 min
Our recent conversations with professional trustees reveal mixed views about a future shaped by regulatory change and the direction of the DB pensions market.
Policy and regulatory shifts around new endgame options are prompting many schemes to reassess their long-term goals. The Pensions Regulator (TPR) encourages trustees changing endgame to review their governance structure, and think about whether the trustee board has the experience and expertise to carry out the endgame strategy effectively.
Many schemes are turning to professional trustees to explore and execute endgame options, both traditional and emerging, which can be complex decisions. Professional trustees recognise that this has driven a rise in appointments in recent years, and demand could stay strong as schemes look to get the expertise they need for this kind of strategic work.
A scheme that chooses to run on may continue with a trustee board, but sole trusteeship and consolidators are viable alternatives. Trustees need to consider member representation, longevity of appointments, flexibility in trustee eligibility and conflicts of interest. With small numbers of schemes expected to run-on, the near term effect on which governance model dominates may be muted.
Another driver of demand for professional trustees is demographic. Data from the Department for Work & Pensions suggests a surge of retirements from traditional trustee boards in the next three years. Professional trustee firms can fill these gaps, especially where they have ‘career trustees’. A few of the firms we spoke to saw these retirements as an opportunity; others thought them to be outweighed by a competitive market, passive endgame discussions and a slow flow of opportunities.
In the long term, demand could be dampened by a shrinking market. At the moment, only 2% of DB schemes are winding up every year, but we expect faster wind-ups to accelerate the decline in DB schemes. The risk transfer market remains busy, and schemes approaching insurers may have more time to prepare for a buy-out before transacting a buy-in. Alternatives like superfunds could also reduce the number of schemes looking for professional trustees as they join consolidated arrangements.
Some firms are confident that demand for their services will remain strong; others worry about the shrinking number of schemes. This year may be telling: a public consolidator is being talked about, and the Clara superfund has proved so successful that TPT is launching its own.
On balance, we expect demand for professional trustees to grow strongly in the short term. The long-term outlook suggests fewer opportunities but more potential revenue from each.
Professional trustee firms have the resource to govern many schemes, so we expect their market share to grow. Ignoring the regulatory change on the horizon, we expect sole trusteeship to continue to grow, especially if member-nominated trustee numbers continue to fall. Consolidation and competition means professional trustee firms need to diversify to grow in this environment longer term, and market share may become stable as we approach 2035.
The firms are diversifying in various ways. Some are looking at their role in a consolidating market. DB superfunds, master trusts and multi-trust consolidators operate with fully professional boards or sole trustees; DC master trusts and collective DC schemes also have fully professional boards. But consolidators are typically commercial entities, so potential conflicts of interest can prevent a firm being appointed to more than one board.
Other firms are exploring their governance services. In-house governance expertise can be applied to independent governance committees for DC schemes and outsourced pensions management. Some firms are considering how to apply these skills beyond pensions.
As pension scheme outlooks become more complex and the opportunities for professional trustees broaden, so will the skills needed to capture them. In our next blog, we’ll share our insights on firms’ recruitment considerations.
If you’d like to discuss these changes or explore how we can help you make the most of the opportunities for professional and sole trustees, please get in touch.
Important information
This blog is based upon our understanding of events as at the date of publication. It is a general summary of topical matters and should not be regarded as financial advice. It should not be considered a substitute for professional advice on specific circumstances and objectives. Where this blog refers to legal matters please note that Hymans Robertson LLP is not qualified to provide legal opinion and therefore you may wish to obtain independent legal advice to consider any relevant law and/or regulation. Please read our Terms of Use - Hymans Robertson.
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