Canadian defined benefit pension plan sponsors have made roughly $1.4 billion in annuity purchases during the first two quarters of the year, according to a new report from Telus Health.
At the halfway point of 2025, the pension risk transfer market has seen a considerable slowdown in activity following a record-breaking 2024, which resulted in $11 billion worth of transactions.
Read: Canadian pension risk transfer market down 60% in first half of 2025: report
Despite pension plan funding remaining exceptionally strong in 2025, this year’s slowdown is being attributed to plan sponsors already taking advantage of favourable conditions in 2024, the report said.
Well funded plan sponsors still on the sidelines are likely being delayed due to complex decision-making hierarchies, it noted.
“Early planning, stakeholder education, and a well-structured process are proving essential for transacting opportunistically. Organizations that establish clear governance frameworks and decision-making protocols in advance are better positioned to take advantage of the current conditions,” the report said.