1. Aon's Pension Risk Tracker reports a funded ratio of 112.6%. 2. Pension assets increased by 0.6% in Q4 2025. 3. Canadian bond yields rose, increasing discount rates by 11 basis points. 4. Solid performance was noted despite market volatility in 2025. 5. Plan sponsors are preparing for ongoing uncertainty in 2026.
FAQ
Why Bullish?
The positive trend in pension funded ratios may indicate strong financial health for companies utilizing Aon's services, enhancing demand for their expertise. Historical examples show that similar improvements in pension funding have correlated with increased profitability for consulting firms like Aon.
How important is it?
The article provides crucial data that can influence investor sentiment towards Aon, especially in the pension advisory segment. Increased funding ratios can enhance Aon's consulting prospects, protecting clients against market volatility and making it a more attractive partner.
Why Short Term?
Improvements in pension plans typically lead to immediate enhancements in consulting contract opportunities, boosting short-term revenues. However, long-term impacts will depend on sustained economic conditions and pension health.
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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Media Contact
Alexandre Daudelin
+1 514 967-9330
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 in over 120 countries provide our clients with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon's newsroom and sign up for news alerts here. (PRNewsfoto/Aon plc)" alt="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 in over 120 countries provide our clients with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon's newsroom and sign up for news alerts here. (PRNewsfoto/Aon plc)">
SOURCE Aon plc
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