Individual Pension Plans

Benefits designed to meet individualized needs.


Business owners, company executives or incorporated professionals over 45 with an annual income greater than $100,000 are primary candidates for an Individual Pension Plan, or IPP. 

With an allowable contribution limit generally higher than the contribution limits available under an RRSP, the IPP is becoming an increasingly popular option for building retirement savings.

An IPP is a defined benefit registered pension plan established for the benefit of a single employee. The annual retirement benefits funded by the plan are defined by the terms of the plan and are based on a percentage of the employee’s annual employment income.

Unlike a group pension plan, the benefits payable can be designed to suit the needs of the individual beneficiary of the IPP. The IPP can be funded by employer and employee contributions or fully funded by the employer. To qualify as an IPP the employer must fund a minimum of 50 per cent of the required contributions.

Find out if an IPP is right for you.

While an IPP enables the plan holder to accumulate a significantly larger pool of retirement savings, there are drawbacks, including having funds locked in, restricted access until retirement, and extensive financial disclosure requirements. You should consider reviewing the IPP option if you are within 15 to 20 years of retirement, have an annual income of more than $100,000 and expect to retire with your current employer.

We recommend technology firms in Western Canada to lend an ear to Redcliffe & Company to learn how they can position you to provide best in class benefits.

Jennifer Hagen Scholfied, Global HR Director, Nutanix Canada
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