
IPPs Explained
Maximizing Retirement with Individual Pension Plans (IPPs)
Individual Pension Plans, known as IPPs, serve as a high-value retirement tool for high-income earners, including business owners and professionals. These plans provide enhanced contribution limits surpassing those of Registered Retirement Savings Plans (RRSPs), making them an essential strategy for sophisticated retirement planning.
Compare IPPs with RRSPs
When it comes to high earners, the debate of "IPPs vs. RRSPs" often arises. IPPs stand out by offering higher tax-deductible contributions, presenting substantial tax benefits for those with significant earnings. They are especially advantageous for individuals aged over 40, positioning them as a superior retirement planning alternative.
Tax Benefits Analysis
IPP contributions and related fees are tax-deductible, enhancing financial efficacy.
Contribution Insights
Actuarial valuations dictate IPP contributions, which may include past service contributions.
IPPs vs. RRSPs
IPPs offer higher contribution potential than RRSPs, beneficial for those over 40.
A unique feature of IPPs is their allowance for past service contributions, a significant boon for increasing pension savings.
Qualifying for Individual Pension Plans
Eligibility and Suitability

Who Can Benefit from an IPP
Designed for incorporated business owners and key professionals, IPPs cater to those with a significant ownership stake in their company.
Ideal Candidates
The prime beneficiaries of IPPs are individuals over 40 with a history of high T4 income, seeking to bolster their retirement savings. Setting up an IPP for retirement is a pivotal move for them.
Advantages of Individual Pension Plans
Why an IPP may be right for you.
Higher Retirement Savings Potential
With IPPs, you can achieve greater retirement savings, thanks to their higher contribution limits.
Tax Advantages
Contributions to IPPs are not only tax-deductible, but they also enjoy tax-sheltered growth, resulting in significant tax savings.
Creditor Protection
A notable feature of IPPs is their asset protection capability, offering a safeguard for your retirement savings against creditors.
Retirement Flexibility
IPPs provide diverse retirement options, including transfers to other registered plans.
IPPs in Summary
IPPs offer unmatched savings potential, tax benefits, creditor protection, and investment autonomy, solidifying their role as a powerful retirement planning tool.