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Alerts & Updates

FPSC and IQPF Update Unified Projection Assumption Guidelines for Financial Planners across Canada

TORONTO, July 7, 2016 - Financial Planning Standards Council (FPSC) and Institut québécois de planification financière (IQPF) have released updated unified Projection Assumption Guidelines for financial planners across Canada. Developed in 2015 by a committee of actuarial and financial planning professionals and updated annually, the Guidelines aid financial planners in making medium and long-term financial projections that are free from potential biases or predispositions.

 The 2016 updates were completed with extensive feedback from financial planners across Canada and financial firms from across industry sectors. Based on feedback, additions incorporated into the 2016 Guidelines include:

  • Rate of return assumption guidelines for foreign developed market equities (including U.S. market and EAFE market equities) and emerging market equities, as well as rate of return assumption guidelines for short-term investments, Canadian fixed income and Canadian equities
  • Margins within which financial planners may deviate from the rate of return assumption guidelines, with explanation for how to apply the margins
  • Additional explanations for the rate of return assumption guidelines referenced in footnotes, as well as in the body of the report
  • Updated life expectancy information

The Projection Assumption Guidelines for 2016 are the following:

 Inflation rate:


 Return rates

     Short term:


     Fixed income:


     Canadian equities:


     Foreign developed market equities:


     Emerging market equities:


 YMPE or MPE growth rate


 Borrowing rate:



To ensure full transparency and replicability, the Guidelines are drawn from four publicly available data sources: the Canada Pension Plan, Quebec Pension Plan, Willis Towers Watson portfolio managers’ survey, and historical data (based on the DEX 91-day T-bill index S&P/TSX, the DEX Universe Bond™ [Canadian bonds] index, the S&P/TSX [Canadian equities] index, the S&P 500 [U.S. equities] index, the MSCI EAFE [Europe, Australia, Far East] index and the MSCI Emerging Markets index).

“Updates to the Projection Assumption Guidelines ensure that financial planners are equipped with the current information to make financial projections,” says Joan Yudelson, FPSC Vice President of Professional Practice, “allowing them to project their clients’ progress toward meeting their life goals and provide appropriate financial planning advice to address any gaps.”

The 2016 Guidelines are in effect as of June 30, 2016. Full detail on the 2016 unified Projection Assumption Guidelines can be found here.

About Financial Planning Standards Council

As a standards-setting and certification body working in the public interest, FPSC’s purpose is to drive value and instill confidence in financial planning. FPSC ensures those it certifies (CERTIFIED FINANCIAL PLANNER® professionals and FPSC Level 1® Certificants in Financial Planning) meet appropriate standards of competence and professionalism through rigorous requirements of education, examination, experience and ethics. More information is available at

About Institut québécois de planification financière

The Institut québécois de planification financière (IQPF) is the only organization in Quebec authorized to grant financial planning diplomas and to establish rules concerning the ongoing professional development of professional financial planners. Only professionals recognized by the Institut québécois de planification financière are authorized to use the title of Financial Planner (F.Pl.) in Quebec. The IQPF is also the only organization in the province entirely dedicated to and reserved for financial planners.

For more information, please contact:

Caroline Horcher
Manager, Public Affairs
Financial Planning Standards Council
416.593.8587, ext. 232 or 1.800.305.9886