Increasing Retirement Income with an IPP

By providing the maximum benefits permitted under the Income Tax Act, an IPP generally allows higher tax-deductible contribution amounts than those permitted under an RRSP. For individuals who wish to maintain their pre-retirement lifestyle when retired, IPPs are an effective way to accumulate tax-sheltered funds.

Who can Open an IPP?

IPPs are designed for incorporated business owners and incorporated professionals.

Reasons to Consider an IPP

  • Substantially higher retirement savings compared to an RRSP
  • Higher annual contributions than an RRSP for individuals over age 40
  • IPP investments grow on a tax-deferred basis
  • Assets within an IPP are protected from creditors
  • Contributions and IPP related expenses are tax-deductible for the sponsoring company
  • Possible to make contributions for past years of employment
  • Additional lump-sum contribution permitted at retirement
  • Able to compensate for investment and funding shortfalls through additional contributions
  • Several options at retirement
  • At death, remaining value goes to surviving spouse or estate

Suitable Candidates

  • Individuals over the age of 40 who earn a T4 income
  • Incorporated business owners and family members
  • Incorporated professionals
  • Senior executives
  • Small businesses with sufficient cash flow to fund the IPP


Individual Pension Plans (IPPs)

If you would like more information on IPP's or would like a complimentary Customized IPP Illustration, to see how this strategy may work for you, please complete the form below and Abbas will be in touch.

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