Platform Update! New FP Canada rate of return assumptions
Hi Everyone!
Some of you may have already noticed that we've updated the rate of return assumptions to align with the new FP Canada guidelines. This happens every year around April/May.
The new rates for 2026 and beyond are slightly lower than in 2025. There are two main changes...
- Equity/Stock Return: The blended Canada/US/Global return assumption is going to 6.56% from 6.71%
- Fixed-Income/Bond Return: The fixed-income/bond return assumption is going to 3.20% from 3.40%
For more details on why FP Canada changes the rate of return guidelines we recommend reading their updated report, there are a number of factors mentioned including recent returns and valuation metrics...
https://www.fpcanada.ca/projection-assumption-guidelines
From our testing we noticed that this will affect both After-Tax Estate and Success Rate. The typical decline in Success Rate was between 0% and 3%. The decline in After-Tax Estate Value depended on the length of projection, existing assets, contribution rate, and drawdown rate.
For example...
On a $1,000,000 portfolio the decrease in equity returns from 6.71% to 6.56% meant a decline in After-Tax Estate Value of $155,440 in Today's Dollars over a 30-year period.
However, if the portfolio was $1,050,000 (perhaps due to strong returns in 2025 there was an increase of $50,000 versus the previous year's plan) then the decline in the rate of return assumption was entirely offset.
You can see more details in the help article here...
https://help.adviice.ca/article/547-faq-understanding-the-updated-rate-of-return-assumptions
FP Canada also released revised guidance for Real Estate growth rates. These have not been implemented yet. We will be releasing new functionality next month that will allow you to adjust the Real Estate growth rates within the model.
Thank you!
Adviice Support Team
Edit: A user pointed out that the Discovery > Investment Plan and Corp. Discovery > Investment Plan will visually show the saved Net Return value until you type in the field. This does not affect the Projection at all, which automatically recalculates year-by-year. We're looking at how we can force the Investment Plan to show the updated net return automatically.
