THINK 2025, hosted by Cowan Benefits Ltd., dove into the latest on topics and themes that matter in the evolving landscape of benefits, retirement, and disability management. One of the highlights of the event was a discussion called Navigating Economic Change: Understanding CAP Guidelines, Economic Insights, and Market Impacts on Retirement Plans.
During this two-part session, Shelly Redwood, Principal Consultant and Practice Lead, Pension and Retirement Consulting shared her perspective on the revised CAP guidelines. She was later joined by Margaret Bennett, Manager, Branch Compliance and Sales Support, and the two discussed the current economic landscape and offered practical strategies to navigate financial uncertainty with confidence.
CAP guidelines and how Cowan helps sponsors stay compliant
Shelly opened the session by briefly speaking about the recently updated CAP guidelines, a continuation of her session from THINK 2024. She reminded attendees that these guidelines were designed to ensure plan sponsors have a robust framework in place to support the long-term financial wellbeing of their employees.
Many plan sponsors are navigating these governance expectations alone, and recordkeepers rarely provide comprehensive frameworks. To help address this gap, the Cowan team regularly meets with clients to review governance activities, analyze member behaviour, and assess plan utilization. Cowan also offers a customizable governance framework that can be tailored to specific needs, helping sponsors reduce vulnerabilities and demonstrate compliance.
Shelly emphasized that governance doesn’t need to be complex. It simply needs to be documented and consistent, which helps sponsors confidently show they’re managing plans according to CAP guidelines.
Understanding the economic landscape
In the second half of the session, Shelly and Margaret discussed market conditions in 2025, how organizations can help mitigate market uncertainty through communication, key tips to remember when investing, and finished off with a look forward into 2026.
Market volatility, inflation, and interest rates
Early in 2025, markets were volatile due to the uncertainty coming from tariffs, though they have since stabilized and reached record highs, partially due to countries diversifying their trade partners. Despite this, many individuals remain anxious because of affordability challenges and slow economic growth. Inflation currently sits at 2.4%, and food prices are a major driver of household stress as grocery bills are still climbing.
To stimulate confidence and investment, the Bank of Canada recently lowered interest rates to 2.25%. Upcoming employment and housing data will provide further insight, especially since housing remains a key contributor to Canada’s GDP.
Canada’s federal budget
Margaret noted that the latest federal budget was not as austere as expected. Social programs such as childcare, dental care, and the school food program remain funded, but the deficit is still significant. Investments focus on productivity and infrastructure projects aimed at job creation and trade efficiency. Despite some uncertainty, as Canada has a minority government, the budget passed the House of Commons not long after THINK 2025.
Supporting employees through financial stress
Financial stress consistently ranks among the top workplace stressors, often impacting health and productivity. Especially when there is a period of high market uncertainty, communication is key. Cowan’s Make Sense program offers confidential one-on-one support, and usage has increased by 40% year-over-year—a clear sign that employees need support during uncertain times.
Margaret and Shelly shared practical advice for employees during periods of market volatility:
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- Turn off the news—or at least dial it down—to avoid reacting to noise instead of making smart decisions.
- Remember your savings goals and stick to your plan if your timeline hasn’t changed.
- Remove the emotions to avoid knee-jerk decisions that can lose you money in the long run.
- Match your investments to your goals: saving for short-term goals is different than investing for retirement.
- Diversify your investments across asset classes to reduce risk and increase resilience.
Group retirement platforms and target-date funds can simplify these strategies by automatically adjusting based on time horizons and time in the market, making it easier for employees to stay on track and within their risk tolerance.
Looking ahead to 2026
As we move toward 2026, both Shelly and Margaret agree that we should expect continued focus on Canadian and U.S. elections, tariff rulings, and global trade negotiations. The World Trade Organization forecasts slower global trade growth—about 0.5%—due to cooling economies and tariff uncertainty. Growth opportunities, however, are expected from AI and increased global trade diversification.
Ultimately, Shelly and Margaret underscored a common theme: resilience in governance, markets, and people. With documented processes, clear communication, and expert guidance, organizations and individuals can navigate uncertainty with confidence and clarity.
