Canadian equities and U.S. equities are both projected to return 6.6%, compared to 6.9% for international developed market equities and 8.0% for emerging market equities.
Prior to the 2025 guidelines, U.S. equities were included in international (previously “foreign”) developed market equities. The change reflects how financial planners use the assumptions in practice, the release said.
For greater accuracy, the latest guidelines also include an updated approach to emerging markets historical data, it said.
In the 2024 guidelines, return projections for Canadian equities were slightly less, at 6.4%. Return projections for foreign developed market equities were 6.5%, and for emerging market equities were 8.3%.
The latest guidelines assume an annual inflation rate of 2.1%, and return rates of 2.4% and 3.4% for short-term and fixed-income investments, respectively — the same as 2024’s guidelines.
The latest…
