Canadian pension plans are entering 2026 from a position of strength, following a year of remarkable gains that saw funded positions reach record levels. The latest TELUS Pension Indices report reveals how robust equity markets and strategic positioning delivered substantial improvements across the pension landscape, and why now is the time to leverage that momentum.
“Canadian pension plans closed 2025 with strong momentum, supported by robust equity markets and rising discount rates that drove solvency positions to record levels. There was strong growth in the final quarter as strong equity returns lifted asset values and strengthened balance sheets”, says Amy Pun, Associate Partner in TELUS Health’s Retirement and Benefits Solutions team.
“Despite a turbulent year marked by macroeconomic uncertainty and shifting monetary policy, funded positions improved across many defined benefit plans. The year also highlighted a growing focus on member outcomes, with plan sponsors emphasizing benefit security, long‑term adequacy, and greater equity across member groups as confidence in pension sustainability became a central priority.
As plans enter 2026, the lessons of 2025 are clear: reinforce diversification and risk management, use strong solvency positions to support durable long‑term funding strategies, and remain responsive to evolving economic and demographic conditions. For many plan sponsors, improved funded levels also open the door to thoughtful surplus utilization—whether through reducing contribution volatility, strengthening margins, or exploring targeted benefit enhancements aligned with member needs. At the same time, sponsors should continue enhancing member‑focused outcomes by prioritizing benefit security, evaluating opportunities to improve adequacy, and promoting more equitable retirement readiness, while leveraging technology and modern plan management practices to build resilience in an uncertain environment.”