Reflections from Simone Reitzes, Managing Director, Medicus Pension Plan
in·fla·tion
These three syllables have carried quite the impact this decade in Canada. We’re one month into 2026, and inflation is at least easing back toward the Bank of Canada’s two per cent target after years of family budgets straining under above-average levels.
Still, our grocery and energy bills tell a different story. We’re living with a paradox: while inflation appears under control, cost pressures and the reality of prices keep our eroding purchasing power top of mind.
For me, protecting against inflation isn’t only about keeping pace with an index, but about trying to keep decades of retirement security safe against the subtle-yet-chronic creep of cost increases. For pension plans, the challenge isn’t just to generate solid returns, but also to preserve real value that beats the quieter, compound effect of inflation over time.
No matter what type of pension plan you may participate in or have access to, consider maxing out your annual pension contributions when you can. Each extra dollar contributed today strengthens your future, helping the retirement fund grow, stay resilient against inflation, and ensure peace of mind down the road.
Shielding physicians’ savings from inflation’s impact
For Canada’s physicians, even low inflation can have an outsized impact on life in retirement. I’ve seen this firsthand – many physicians begin their career with significant medical school debt and enter peak earning years later than other professionals. Also, because people are living longer, they have more years to enjoy — but also more years of lifestyle and healthcare expenses — which makes careful financial planning even more essential.
Physicians are rightfully concerned about inflation’s impact on their savings, with many adjusting their expectations and plans accordingly. In fact, in an MD Financial Management survey around this time last year, 87 per cent of respondents expressed worry about inflation regardless of their age, income or asset levels.
Against this backdrop, inflation protection must be a central part of pension design and investment strategy. That’s why I’m proud to share that our Medicus Pension PlanTM entered 2026 from a position of strength – a strong funded status and well diversified portfolio – affording us the ability to proactively manage inflation rather than reactively absorbing its effects.
And here’s what I'm most excited about: Medicus members will receive 100 per cent inflation protection for 2025. For active members, pension benefits accrued up to the end of 2025 – including buyback purchases – will increase by 4.7 per cent. Our retired members will receive a 2.0 per cent increase to monthly pensions effective this year, on top of the 2.1 per cent they received last year.
While annual inflation increases are not guaranteed, Medicus recognizes the value of inflation protection and strives to grant these increases over time to help our members’ pensions keep up with the cost of living, so they can maintain the lifestyle they’ve planned— today and in the future.
As Medicus grows, we’re proud to be able to protect against inflation in a responsible way and look after the long-term interests and financial security for our physician members and their families. In so doing, we’re keeping our core promise: retirement income that keeps pace with life, not lags it.
P.S. Don’t miss our upcoming webinar on February 25th where we’ll explore how Medicus can help you achieve peace of mind, giving you the freedom to pursue new passions.
