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Individual Pension Plans (IPP)

Dramatically boost your retirement assets

with tax-deductible contributions

As a business owner, we want you to feel confident about your retirement. An Individual Pension Plan (IPP) is a defined benefit pension plan that allows you to increase your retirement savings and establish long-term financial security.

Are you a good candidate for an IPP?

An IPP is specifically designed for a business owner of an incorporated company, an incorporated professional or executive, age 40 and over, earning  $100,000+.  That said, an IPP can be established for someone with lower earnings.

An IPP is NOT well suited for:

  • Sole proprietors and partners of partnerships
  • Business owners who rely on dividends and compensation other than T4
  • Highly cyclical businesses

How an IPP works

An IPP is similar to an RRSP in that it uses an investment account to accumulate assets over time as retirement benefits.  However, unlike the RRSP, an IPP allows for the accumulation of greater assets – up to 65% more than an RRSP, and like a traditional pension plan, sets your monthly income at retirement.  An IPP also provides certain additional guarantees beyond an RRSP to further protect your financial future. Assets accumulated within an IPP are locked-in and may be used only for retirement purposes

Reviewing the IPP forms and documents received from you was wonderful, everything was so well organized and prepared with so much diligence and I really appreciate that!

Supervisor, Administration Support
Raymond James Financial

Key Benefits of an IPP

  • An excellent way to increase your retirement assets and have your company make large tax deductible contributions
  • Allows for significant additional tax deductible contributions at inception and retirement
  • Safer investment rules and limitations compared to the RRSP
  • Allows for additional tax-deductible contributions to be made by the company should the rate of return on plan assets be less than 7.5% a year
  • Pension plan surpluses belong to the member
  • Pre-determines retirement benefits
  • 100% creditor proof
  • No deemed disposition of plan assets upon death in certain situations.  Plan assets remain in the plan to provide benefits to surviving members
  • All costs associated with the pension plan are tax deductible to the company.

Frequently Asked Questions

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