April 28, 2023 – FP Canada Releases New Assumption Guidelines for Long-Term Financial Planning

by | Apr 30, 2023 | Industry Updates

Every year FP Canada, the organization that oversees the financial planning industry in Canada, releases Projection Assumption Guidelines. The guidelines are educated assumptions that are used as the basis for financial plans.

The Projection Assumption Guidelines for 2023 are as follows:

Inflation Rate2.10%
Return Rates
Short-term 2.30%
Canadian equities6.20%
Foreign developed market equities6.50%
Emerging market equities7.40%
*YMPE or MPE growth rate3.10%
Borrowing rate4.30%

*Yearly Maximum Pensionable Earnings (YMPE) or Maximum Pensionable Earnings (MPE)

Although we apply these assumptions for a long-term view of how your financial plan will evolve over time, we also stress test in the event of major changes. We use Monte Carlo simulations that predict poor, medium, and high results over time.

Read the full press release

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