Fewer professional defined benefit (DB) pension trustees are planning to step down from their roles within three years compared to 2022, according to research from Charles Stanley Fiduciary Management (CSFM).

When polled in 2022, 80 per cent of DB scheme trustees were planning to step down from their roles within three years.

The research conducted for 2023 found that this proportion had fallen to 73 per cent, which CSFM said was a sign that the industry had become marginally more stable.

However, CSFM warned that as nearly three-quarters plan to step down, the industry continues to face an exodus in high-value pension professionals.

According to the research, 13 per cent of DB pension trustees expect to exit their role in less than six months, while a further 37 per cent were planning to leave in seven to 11 months’ time.

More than a fifth (22 per cent) planned to step down within one to three years, taking the mean number of months in which professional DB trustees plan to leave their roles to 16 months, down from 20 months in 2022.

CSFM said its research also emphasised he need to find the next generation of trustees to alleviate an impending skills gap, with 39 per cent of those planning to leave within three years doing so because they are retiring.

Meanwhile, 33 per cent were leaving because it was the end of their tenure.

While the proportion of trustees stepping down due to overly burdensome regulations fell by 6 percentage points to 22 per cent, the proportion planning to leave due to onerous reporting requirements rose by 11 percentage points to 31 per cent.

“Although the latest research shows that a degree of stabilisation has occurred in an industry which has been buffeted by serious regulatory pressures and reporting requirements in recent years – not to mention the gilts crisis – we still have almost three quarters of trustees standing on the precipice of exiting their roles and leaving a serious deficit of expertise and experience,” said CSFM senior portfolio manager, Bob Campion.

“Onerous reporting requirements have once again reared their ugly head in 2023 as a factor pushing trustees out, but the effect of impending retirements continues to be the biggest pressure.

“To avoid a sudden shortfall in professional oversight which would put people’s pensions and investments at risk, the industry needs to radically increase efforts to try to attract and retain the required influx of new talent.”

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