Riddaway: In this environment, experience is not a luxury—it’s a necessity.
As the UK government doubles down on its push for economic growth, pension schemes are being propelled into a new era—marked by increased regulation, accelerated consolidation, and mounting climate obligations.
Navigating this evolving landscape demands more than just governance—it requires experienced trustees with the insight, judgment, and adaptability to protect member outcomes while supporting broader societal goals.
The growth agenda: a double-edged sword
The government's desire to unlock capital from pension schemes to fuel economic growth is not without merit. Defined benefit (DB) and defined contribution (DC) schemes collectively steward over £2.5trn in assets. With the right framework, this capital could support productive investment, infrastructure, and innovation in the UK.
However, aligning long-term pension promises with shorter-term economic ambitions is no simple task. Trustees must ensure that any new investment strategies remain consistent with their fiduciary duty—safeguarding member benefits first and foremost. Experienced trustees understand the nuance in these competing priorities, balancing risk and reward with a long-term view that's not easily swayed by political cycles.
Regulatory complexity is growing
The regulatory environment has become significantly more demanding. The Pensions Regulator (TPR) is tightening its grip on scheme funding, governance, and reporting. The new DB funding code, enhanced climate disclosure requirements, and increased scrutiny of trustee knowledge and skills are reshaping the role trustees must play.
Seasoned trustees have the technical fluency to interpret complex regulations and the strategic foresight to implement them pragmatically. Their lived experience enables them to ask the right questions, challenge advisers constructively, and guide schemes through regulatory transitions without losing sight of member outcomes.
Scheme consolidation: more than a structural shift
Consolidation is gaining momentum, particularly in the DC space with the rise of authorised master trusts and emerging DB superfunds. While consolidation offers potential efficiencies, it also brings risks—ranging from loss of scheme identity to questions of value for members and governance quality.
Trustees with experience across different scheme types and governance models are vital here. They can help evaluate when consolidation is in members' best interests and ensure a smooth transition, preserving member protections and monitoring outcomes post-consolidation.
Climate risk and the opportunity of green investment
Climate risk is now firmly on the trustee agenda. TPR's guidance and requirements under the Task Force on Climate-related Financial Disclosures (TCFD) framework have pushed larger schemes to assess and act on climate risk as a financial risk.
However, the climate problem is getting worse and money needs to be invested in climate solutions, which are not always traditional investment products. Experienced trustees are best placed to explore these within the scheme's risk appetite and understand the changes in practices that may be needed, particularly with regard to due diligence, to enable funds to be directed towards climate solutions. Their stewardship plays a crucial role in ensuring schemes can be part of the solution to the climate crisis.
The role of junior professional trustees
While experience is vital, this doesn't mean junior trustees should be excluded. In fact, pairing them with experienced trustees can create an ideal balance. As experienced trustees wind down and retire, there is a potential gap in experienced professional trustees. Especially if the number of appointments continues to move to schemes that don't currently have a professional trustee. Senior trustees can mentor newer trustees, helping them develop confidence and competence while maintaining the quality of governance. However, experience cannot be taught and junior trustees are more likely to ensure boxes are ticked and take a risk zero approach and may be appropriate for large schemes that require a professional trustee ‘team'. For many schemes a proportionate approach is required and you can only get this from experienced trustees who understand the pensions risk environment and the magnitude of the risks they are taking on, and are therefore confident to risk manage the pension scheme.
The future requires more than compliance
The UK pensions landscape is in flux, and the role of trustees is evolving from oversight to strategic leadership. As schemes face bigger expectations—from members, regulators, and policymakers alike—the need for trustees who can navigate complexity, make informed decisions, and lead with integrity has never been greater.
In this environment, experience is not a luxury—it's a necessity.
Bobby Riddaway is a professional trustee and managing director of HS Trustees
