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Individual Pension Plans (IPP) offer a personalized approach to retirement planning, providing greater flexibility, tax advantages, and retirement income security. Explore how an IPP can benefit you and your employees.

Individual Pension Plan

What is an Individual Pension Plan (IPP)?

An Individual Pension Plan (IPP) is a retirement savings vehicle designed for business owners and incorporated professionals who want to maximize their retirement savings while enjoying significant tax advantages. Unlike traditional pension plans, which are typically offered by employers to all employees, an IPP is established by the business for the benefit of a select group of key employees, including the business owner(s).

Key Features of Individual Pension Plan

  • Investment Flexibility: IPPs offer a wide range of investment options, allowing clients to build a diversified portfolio tailored to their individual preferences and investment objectives.
  • Tax Advantages: Contributions made to an IPP are tax-deductible for the corporation, reducing the company’s taxable income. Additionally, investment income earned within the IPP grows tax-deferred until retirement, allowing for greater investment growth over time. Upon retirement, IPP payments are taxed as eligible pension income, which may result in lower tax rates compared to other forms of retirement income.
  • Enhanced Retirement Contributions: IPPs allow for larger tax-deductible contributions compared to traditional retirement vehicles like RRSPs or TFSAs, enabling individuals to build a more substantial retirement nest egg.
  • Creditor Protection: IPP assets often enjoy creditor protection in the event of personal bankruptcy, safeguarding retirement savings from potential financial challenges. This feature is especially valuable for business owners and professionals operating in industries prone to heightened financial risks.

Services Provided with an IPP

Plan Building

Preparation, implementation and registration of your plan with the Canada Revenue Agency and provincial authorities, where applicable.


Plan Analysis

Actuarial valuations, ongoing legislative compliance and calculation of annual pension adjustments.


Plan Administration

Employee enrollment, plan maintenance, return reporting, etc.


Take the Initiative

Secure your financial future and embark on a path to a fulfilling retirement with an Individual Pension Plan. When time is right, explore how our IPP solutions can help you and your key employees achieve your retirement objectives.

Individual Pension Plan: Request Information

Individual Pension Plan Frequently Asked Questions

If you are age 45 or over, own a company and your annual salary is over $100,000, an Individual Pension Plan can help you optimize your retirement income. If not, an RRSP is generally a better choice for you.

The plan is funded by the company and allows more money to be saved for retirement than an RRSP.  There are significant tax savings for the company too, because the plan contributions reduce taxable earnings.

The plan recognizes years of past service, increasing your retirement pension. Customization is possible: indexation of benefits, early retirement without reduction and bridge benefit. It’s also possible for assets to continue tax-free growth after retirement if your pension benefits are drawn directly from the IPP.