Professional trustee companies are expected to be responsible for around two-thirds of private sector defined benefit (DB) pension schemes within five years, according to new research from consultancy Isio.
The firm’s latest Professional Independent Trustee Survey found that the 10 largest providers oversee more than 2,400 schemes and £1trn in assets – underscoring their ‘systemic importance’, as highlighted by the Pensions Regulator in 2024.
This marked an increase in the proportion of schemes with a professional trustee from 31% in 2020 to 45% in 2025. By 2030, Isio predicts this proportion will have risen to 66%.
While growth overall has remained steady year on year, the increasing complexity of the regulatory environment is leading to heavier workloads for professional trustee firms, Isio reported.
There were 174 new appointments reported last year, offset by some pension schemes buying out and some mandates moving between providers.
“Growth is no longer being driven simply by an increase in the number of schemes, but by the complexity of the work required to manage them effectively.”
Harvi Rana, Isio
However, Isio said professional trustee companies reported “significantly increased workloads across existing schemes”. This was driven by issues such as higher governance requirements, data cleansing, and risk transfer preparation work.
“This has supported continued growth, with average revenues rising by 12% over the year, despite little change in total appointments,” Isio stated.
Harvi Rana, a director at Isio, said: “Professional trustees are playing an increasingly important role in supporting pension schemes as governance expectations continue to evolve. As schemes progress towards endgame and navigate a more complex regulatory environment, there is a clear need for robust oversight and specialist expertise.
“What we are seeing is a shift in how demand is developing. Growth is no longer being driven simply by an increase in the number of schemes, but by the complexity of the work required to manage them effectively. This is reinforcing the role of professional trustees in helping schemes make well-informed decisions at critical stages in their journey.”
Isio’s research showed that sole trustee arrangements have continued to grow in importance for many professional trustee companies.
More than half (55%) of all appointments for the largest providers are on a sole trustee basis, a figure that is forecast to grow to 65% over the next five years. Last year, 48 appointments transitioned to a sole trustee model. Sole trustees are estimated to oversee approximately £80bn in assets, Isio found.
