TORONTO – A new report says the health of Canadian defined-benefit pension plans improved in 2025, helped by strong gains in equities and modest returns on fixed-income investments.
The report by pension consulting firm Mercer says the median solvency ratio, which measures the adequacy of a plan’s assets to cover its promised benefits, was 132 per cent as of Dec. 31, up seven percentage points for the year including a gain of three percentage points in the fourth quarter.
Mercer also says 68 per cent of plans in its database had a solvency ratio above 120 per cent, which was an increase from 55 per cent of plans at the start of the year.
The proportion of plans in Mercer’s database with a solvency ratio above 100 per cent also rose to 92 per cent in 2025 from 88 per cent.
The report says the improvement came even as the Canadian economy experienced a turbulent year with trade disruptions and geopolitical risks.
Brad Duce, a Mercer principal in Toronto, says the overall financial health of DB pension plans continues to be generally secure from a solvency perspective for Canadian workers and retirees.
This report by The Canadian Press was first published Jan. 6, 2026.
