Canadian Pension Funded Ratio Rises to 116.7%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Yahoo Finance
- Pension Funded Ratio Increase: According to Aon's Pension Risk Tracker, the aggregate funded ratio for Canadian pension plans in the S&P/TSX Composite Index rose to 116.7% from 111.4% last quarter, indicating improved financial health of pension plans.
- Asset Growth: In Q2 2026, pension assets increased by 1.6% compared to the same period in 2025, demonstrating resilience in asset growth amidst economic fluctuations, which enhances the stability of pension plans.
- Interest Rate Impact: The long-term Government of Canada bond yield increased by 33 basis points relative to the previous quarter, while credit spreads narrowed by 9 basis points, resulting in a 24 basis point rise in the discount rate to 4.67%, positively affecting pension asset-liability management.
- Market Uncertainty: Despite regaining some ground lost in Q1, Aon partner Nathan LaPierre noted that volatility and uncertainty remain significant challenges, prompting pension plan sponsors to continuously evaluate strategies to mitigate these uncertainties.
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Analyst Views on AON
Wall Street analysts forecast AON stock price to rise
16 Analyst Rating
11 Buy
4 Hold
1 Sell
Moderate Buy
Current: 359.820
Low
326.00
Averages
396.67
High
443.00
Current: 359.820
Low
326.00
Averages
396.67
High
443.00
About AON
Aon plc is an Ireland-based professional services company, which is engaged in providing a range of risk capital and human capital solutions. The Company operates through two segments, which include Risk Capital and Human Capital. The Risk Capital segment supports clients through its commercial risk and reinsurance solution lines. Its commercial risk includes insurance and specialty brokerage, global risk consulting, captives management, and affinity programs. Its reinsurance includes treaty reinsurance, facultative reinsurance, strategy and technology group, and capital markets. The Human Capital segment supports clients through its health and wealth solution lines. Health includes consulting and brokerage, consumer benefits solutions, and talent advisory services. Wealth includes retirement consulting, pension administration, and investments consulting. Its commercial risk solutions include insurance and specialty brokerage, global risk consulting, captives management, and others.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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