The 2025 Benefits Year Wrap-Up: What shaped the industry — and what comes next

As 2025 draws to a close, the benefits landscape looks very different from where we started the year. Employers faced tightening budgets, rising expectations from employees, shifting legislative frameworks, and rapid innovation in health and well-being technology. 

Through all of it, one theme stood out: employees want meaningful, flexible support — and employers want sustainable, predictable ways to provide it. 

This was a year of refining foundations, strengthening structures, and adding intentional enhancements — a year where organizations began treating their benefits plans like the strategic assets they truly are. 

Let’s take a look back at the trends that defined 2025 — and a look ahead at what 2026 will bring. 

1. Personalization became the expectation — not the exception 

If 2024 planted the seeds of personalized benefits, 2025 was the year they fully bloomed. Employees increasingly demanded benefits that adapt to their lives, not the other way around. 

That shift showed clearly in the numbers: 

• According to the Benefits Canada 2025 Healthcare Survey, about 40% of surveyed employers now offer a Health Spending Account (HSA) as part of their benefits — up significantly from 31% when the question was first asked in 2017. 
• Nearly three-quarters (72%) of plan members said they are open to receiving personalized communications from their benefits provider. 
• This combination — flexible funding via HSAs plus personalized education and communications — is helping move the industry away from one-size-fits-all. 

2. Mental health & whole-person wellbeing took center stage 

2025 reaffirmed what many forward-looking employers have already realized: well-being is no longer a “nice-to-have” — it’s a core part of organizational health. 

Key data points from 2025: 

• The same 2025 Benefits Canada survey found that 39% of plan members reported experiencing extreme daily stress — a five-year high. 
• 59% of plan members said they have at least one chronic condition, yet employers estimated only about 38.5% of their workforce are living with a chronic condition — indicating a significant underestimation by sponsors. 

These gaps matter. The numbers show that many employees are struggling — and that many employers may not fully realize how prevalent chronic or mental-health-related needs are in their workforce. 

3. Cost pressures forced employers to build more strategically 

2025 will be remembered as a year when benefit costs surged — compelling many employers to rethink and restructure their offerings. 

• The average medical cost trend for employer-sponsored benefits in Canada is projected to hit 7.4% in 2025, up from 5.0% in 2024. 
• Only 55% of Canadian organizations report feeling successful at containing healthcare cost increases. 
• Nearly 73% of benefits managers say they’re under more pressure from rising healthcare costs than at any point in the past decade. 

Because of this pressure, many employers shifted toward modular and flexible plan designs — often using HSAs as the predictable foundation — and delaying or carefully evaluating optional add-ons. 

4. Tech, data & modern administration became key differentiators 

In 2025, benefits aren’t just about what you offer — but how you deliver and manage it. 

The industry is seeing rising interest in: 

• Digital-first enrollment and claims platforms, often with AI-driven support or data analytics. 
• Holistic benefits ecosystems combining physical health, mental health, wellness, and flexibility in a user-friendly experience. 

For employees, this translates to more seamless benefits experiences: easier access to care, more transparent communications, and more control over how they use their coverage. 

For employers, it means data-driven insights, smarter design decisions, and potentially better long-term risk management. 

What employers learned this year 

Three lessons stood out: 

1. Flexibility wins. 
2. Transparency and communication matter. 
3. A strong foundation is essential. 

Looking ahead to 2026: What’s next? 

Based on what we saw this year, here’s what organizations should watch — and plan for: 

• Modular, flexible benefit models. 
• Increased focus on mental health and chronic disease management. 
• Data-driven plan design. 
• Balancing cost sustainability with employee value. 

Final thoughts 

2025 was a transformative year for employee benefits. Organizations became more strategic, employees became more vocal about their needs, and the entire industry moved toward flexibility, technology, and whole-person wellbeing. 

As we head into 2026, benefits are no longer just a checkbox — they are an investment in culture, stability, and the long-term health of your people. 

So if controlling your costs and providing more value to your team is on your New Year's resolution list, give us a shout!

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