Canadian defined benefit pension plans' funded positions strengthened in 2025, reaching 112.6 percent: Aon

Canadian defined benefit pension plans' funded positions strengthened in 2025, reaching 112.6 percent: Aon

TORONTO, Jan. 2, 2026 /CNW/ -- Aon plc (NYSE: AON), a leading global professional services firm, announced today that the aggregate funded ratio for Canadian pension plans in the S&P/TSX Composite Index increased to 112.6 percent compared to 111.9 percent at the end of last quarter, according to the Aon Pension Risk Tracker. At the same date last year, it was at 107.5 percent.

The Aon Pension Risk Tracker calculates the aggregate funded position on an accounting basis for companies in the S&P/TSX Composite Index with defined benefit plans. To access Aon's interactive tracker, which has been tracking this data since 2013, click here.

Key findings for the quarter ending December 31, 2025 include:

• Pension assets increased 0.6 percent over the fourth quarter of 2025.
• The long-term Government of Canada bond yield increased 18 basis points (bps) relative to the previous quarter rate, and credit spreads narrowed by 7 bps. This combination resulted in an increase in discount rate of 11 basis points, to 4.69 percent.

"Pension plan performance was solid in 2025," said Nathan LaPierre, partner for Wealth Solutions in Canada at Aon. "This performance occurred despite the significant volatility and uncertainty experienced by investors throughout the year. Plan sponsors continue to be resilient and to contemplate how they may defend their plans against the uncertainty that will continue into 2026."

About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

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SOURCE Aon plc