INDIVIDUAL PENSION PLAN

An Individual Pension Plan (IPP) is a defined benefit pension plan sponsored by a corporation. Tailored to meet the needs of high-income earners, it is particularly suited for:

• Incorporated professionals or business owners who are at least 40 years of age.
• Individuals earning a T4 income of at least $100,000 annually for the past three years.
• Those looking to secure a reliable, comfortable retirement with greater retirement contributions and benefits than what Registered Retirement Savings Plans (RRSPs) typically offer.

wHY CHOOSE AN IPP OVER RRSP?

While RRSPs are a popular choice for retirement savings in Canada, they often fall short for high-income earners aiming to maximize their retirement savings. Here's why an IPP is a superior alternative:

Higher Contribution Limits



Unlike RRSPs, which have annual contribution caps, IPPs allow higher contributions, especially as you age. This feature ensures that you can save more for retirement as your earning capacity peaks.

Defined Benefit Security

An IPP offers the certainty of a defined retirement income, reducing market risk and ensuring you have a predictable income stream post-retirement.

Tax Deductibility

IPP contributions made by your corporation are tax-deductible, providing immediate tax savings while simultaneously funding your future.

Catch-Up Contributions for Past Services

If you've been incorporated for years, you may be eligible to make retroactive contributions for past service years, further boosting your retirement nest egg and lowering your corporation's taxable income.



Investment Growth

The investment income earned within the IPP grows on a tax-deferred basis, enabling faster accumulation of wealth compared to RRSPs.



Creditor Protection

IPP assets are typically protected from creditors, offering peace of mind for business owners looking to safeguard their savings.