Mercer reports continued solvency gains for Canadian DB plans in Q4 2025
February 27, 2026
Canadian defined benefit (“DB”) pension plans continued to show strong funding levels at the end of 2025, according to the latest Mercer Pension Health Pulse.
Mercer reports that the median solvency ratio of 471 DB plans in its database rose to 132% as of December 31, 2025, reflecting a 7% improvement during the year, including 3% in the fourth quarter.
Mercer also notes that 68% of plans ended the year with solvency ratios above 120%, compared to 55% at the start of 2025. In addition, 92% of plans were above full funding on a solvency basis.
Despite economic and geopolitical pressures throughout 2025, Mercer’s data shows that DB plans demonstrated resilience through diversification and strong risk?management practices, according to Brad Duce, Principal, Mercer Toronto.
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