Aon reports modest decline in funded levels for Canadian pensions in first quarter of 2025
May 30, 2025
The aggregate funded ratio for pension plans at Canada’s largest companies fell slightly in the first quarter of 2025, according to a new report from Aon.
The Aon Pension Risk Tracker, which follows Canadian pension plans in the S&P/TSX Composite Index, pegged their aggregate funded ratio at 105.4% on March 31, 2025, down from 107.5% at the end of 2024.
The key findings include that pension assets lost 0.5% over the first quarter of 2025. Meanwhile, the discount rate used to calculate the solvency ratio remained unchanged at 4.47%, after the 10-basis point drop in long-term Government of Canada bond yields was offset by a 10-basis point widening in credit spreads.
Nathan LaPierre, partner for Wealth Solutions in Canada at Aon, noted that uncertainty around tariffs in recent months made markets “quite volatile.”
"Pension plans faced significant headwinds during the quarter, but (are) starting from strong funded positions at the beginning of the quarter," he added.
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