Individual Pension Plans are like supercharged RRSPs

Most individuals in their late 40's and 50's are concerned with providing enough retirement income that will last theirs and their spouse’s lifetime. Many are realizing that the RRSP assets they have been building will not last their lifetime, nor provide the level of retirement income they want.

Business owners and self employed incorporated professionals have an opportunity to supplement the annual income their RRSPs will produce. This is achieved through the use of an Individual Pension Plan (IPP),  which maximizes personal retirement income under the Income Tax Act, together with creating significant tax benefits for the business.

Advantages of Individual Pension Plans:

An Individual Pension Plan can provide 50% more retirement income than an RRSP alone The structure of the Individual Pension Plan provides a specific income stream based upon years of service and earnings. This income stream is guaranteed.

In the event that the plan suffers lower than expected investment returns, the individual’s corporation has the ability to make additional tax-deductible contributions to adequately fund the plan.

Our actuarial services are provided through our Actuarial Practice Leader, Bill Kennedy.

Let us review your retirement plan to ascertain if pension legislation is appropriate in helping you achieve your financial independence goals.