Canadian pension plans saw strong results in June, helping to improve their financial position halfway through the year. According to TELUS Health’s latest Pension Indices report, the plan assets of a representative pension plan returned 1.5 per cent in June, thanks to strong performance in both Canadian and global stock markets.
- Global markets returned 3.7 per cent in Canadian dollars
- Canadian equities followed with a 2.7 per cent gain
This growth helped pension plans recover from earlier market ups and downs in 2025. Amy Pun, Associate Partner in TELUS Health’s Consulting team, explains:
“June delivered great results for Canadian pension plans... marking a clear recovery from the market weakness and volatility experienced during certain periods in early 2025.”
On the bond side, interest rates increased in Q2, which helped boost the financial health of pension plans even further. Long-term inflation expectations remained stable, around 1.91 per cent.
What This Means for Plan Sponsors
With stronger financial footing, now is a good time for plan sponsors to:
- Review their investment strategy to make the most of recent gains
- Adjust bond holdings while interest rate conditions are still favourable
- Focus on careful portfolio oversight to ensure that they are responding thoughtfully to these favorable conditions
Amy Pun adds:
“The current environment presents a great opportunity for pension plans to strengthen their position. Those that act thoughtfully now will be better prepared for long-term success.”
Looking Ahead
As we enter the second half of 2025, the strong results from Q2 are encouraging. But continued monitoring and smart decision-making will be key to making the most of this momentum.
Click here to read the June report.