What rate of return is your advisor using when they prepare retirement plans or investment proposals for you?

If you don’t know, it’s time to start asking.

Last week, FP Canada and the Institute of Financial Planning released the 2025 Projection Assumption Guidelines, providing standardized return assumptions for financial planners in Canada. Those guidelines are designed to promote consistency and objectivity in long-term financial projections, such as retirement planning, by offering data-driven benchmarks for expected returns across various asset classes.?

2025 Projection Assumption Guidelines overview

The 2025 guidelines incorporate market-based expected returns and historical data to reflect realistic long-term (10 year) expectations. The key assumptions in the annual report are as follows:

• Inflation rate: 2.1%

• Short-term vnvestments: 2.4%

• Fixed income: 3.4%

• Canadian equities: 6.4%

• U.S. equities: 6.6%

• International developed........

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