Professional trustee appointments continued to rise in 2025, but growth slowed sharply as more defined benefit (DB) schemes progressed towards buyout and wind-up, according to WTW’s Professional Trustee Survey 2026.
Appointment growth fell to 3% last year, compared with 8% in 2024 and 12% in 2023. WTW said strong funding positions are accelerating endgame strategies, with schemes increasingly transferring liabilities to insurers and exiting trusteeship arrangements following buyout.
Around 2,500 professional trustee appointments are now in place across DB schemes, meaning approximately half of all DB schemes use at least one professional trustee. However, as pension funds reach settlement more quickly, new appointments are increasingly being offset by mandates ending after buyout and wind-up.
Hazel Kendrick, head of strategy relationships at WTW, said: “The professional trustee market is entering a more mature phase. Growth in appointments remains positive, but it is now being influenced by more schemes reaching their endgame and transitioning to buyout.
“At the same time, we are seeing clear momentum behind the sole trustee model, as schemes prioritise speed and clarity of decision-making. The inclusion in our research of professional trustees who are not part of a firm also underlines how different governance models are meeting different needs.
“The focus for the market now is on demonstrating strong governance, independence and the ability to deliver successful outcomes.”
WTW found that sole trusteeship remains the fastest-growing segment of the market, recording growth of 7% during 2025. According to the consultancy, many schemes are replacing traditional trustee boards with sole trustee arrangements as they approach buy-in or buyout, seeking faster decision-making and more streamlined governance.
The survey suggests trustee structures are increasingly being selected to support schemes’ endgame objectives, with governance arrangements tailored to facilitate settlement and risk transfer.
The growing use of sole trusteeship is also increasing scrutiny of governance processes.
WTW said professional trustee firms must demonstrate how they maintain robust decision-making and diversity of thought without a multi-person trustee board. Most firms have formal oversight panels (89%), internal audits of decision-making (83%) and documented records of alternative options considered (78%). Nearly half (44%) plan to introduce additional external perspectives on key decisions and rotate trustee teams.
Regulatory attention is also intensifying. The Pensions Regulator (TPR) has increased its oversight of larger firms and is expected to publish guidance on professional corporate sole trusteeship shortly.
Meanwhile, the Department for Work and Pensions’ recent consultation on trusteeship and governance proposes higher standards for professional trustees, including requirements relating to independence, conflicts of interest and member representation.
David Walmsley, director of trusteeship, administration and defined benefit supervision at TPR, said: “Our vision is that all schemes are well-run by highly skilled trustees applying effective scheme governance, designed to deliver good outcomes for members.
“To achieve that vision, it is vital that we continually improve our understanding of the professional trustee market, so that we can work with the sector to raise standards of trusteeship and governance in members’ interests.”
Industry participants said the slowdown in appointment growth masks broader changes across the market.
Nathalie Sims, partner at LCP, said: “We’re seeing more schemes move to a professional corporate sole trustee model, alongside significant innovation in how trustee firms are structuring and delivering their services.
“The market isn’t standing still; it’s evolving to meet the changing needs of schemes as they move through their endgame journey.”
Kim Nash, managing director at Zedra, said the firm continues to see a “very healthy pipeline” of opportunities, although the nature of appointments has changed.
She said: “Three to five years ago, many schemes were appointing a professional trustee for the first time as the market embraced the benefits of independent governance. Today, it’s increasingly common to see schemes reviewing and retendering existing appointments rather than making their first professional trustee appointment.”
Nash described this as a “positive sign of a maturing and successful market”, adding that diversification remains central to Zedra’s strategy as the sector evolves, although the firm is focusing on adjacent governance markets rather than services that could compromise its independence.
The changing market is also encouraging alternative governance models. Last week, HS Trustees launched Trustee Boards+, aimed at small and medium-sized pension schemes as an alternative to corporate sole trustee arrangements.
The firm said the offering responds to demand from regional actuaries and legal advisers for a more flexible approach to professional trusteeship that strengthens governance while retaining existing trustee board structures.
Bobby Riddaway of HS Trustees commented: “Many small schemes are already well governed and simply need additional experience and expertise at trustee level – without giving up control. In many cases, these schemes benefit from strong chairs with a long history with both the scheme and the employer. Trustee Board+ is designed to complement these boards, not replace them.”
