TORONTO — The health of Canada's defined benefit plans improved in 2025, helped by strong gains in equities and modest returns on fixed-income investments, a new report says.
A report from pension advisory firm Mercer said the average solvency ratio, which measures the sufficiency of plan assets to cover promised benefits, was 132 percent as of Dec. 31, up seven percentage points for the year, including a three percentage point gain in the fourth quarter.
Mercer also reported that 68 percent of the plans in its database had solvency ratios above 120 percent, an increase from 55 percent of plans at the start of the year.
The share of plans in Mercer's database with solvency ratios above 100 percent also rose to 92 percent in 2025 from 88 percent.
The report said the improvement came even as the Canadian economy endured a turbulent year with trade disruptions and geopolitical risks.
Brad Dews, a director at Mercer in Toronto, says the overall financial health of DB pension plans remains broadly safe in terms of the solvency of Canadian workers and retirees.
This report by The Canadian Press was first published Jan. 6, 2026.
