Defined contribution: Top trends of 2025 

Where there exists challenges, there exists opportunity. Employees faced increasing financial stress due to rising costs, high inflation and market volatility. Meanwhile, employers were challenged to do more with fewer resources while keeping pace with a shifting risk environment and evolving regulatory expectations.

In 2025, employers face a dual challenge: how to support their employees’ well-being in a demanding environment and how to stay ahead of regulatory expectations. 

To set yourself up for success this year, consider these immediate actions:

• Re-assess your governance: With new guidance from the Canadian Association of Pension Supervisory Authorities (CAPSA) now available to plan sponsors, it’s time to review your governance framework. This will help strengthen your plan and enhance member satisfaction.
  
  
• Manage emerging risks: The changing world and economy have introduced new risks and responsibilities for organizations. With millions of dollars at stake, it’s crucial to take emerging risks such as third-party risk, cybersecurity threats and ESG factors seriously.
  
  
• Identify and embrace opportunities: While the economic environment may be challenging, organizations that find ways to support their employees will benefit – from improved employee attraction and retention, as well as increased morale and productivity.

As we look ahead to this year, it’s natural to feel apprehensive. Expectations from both employees and regulators are rising, and employers must deliver in this challenging environment. However, organizations that rise to meet these expectations, and meet the moment, will ultimately reap the rewards.

Explore our whitepaper, Workplace Retirement and Savings Plans Top Trends of 2025: Meeting the Moment for more insights and strategies.