Individual pension plan (IPP)

For business owner or senior executive.

Individual pension plan (IPP)

Contributions are higher than the maximum allowable for RRSPs

  • A defined benefit pension plan designed for a single individual.
  • For business owners and high income earners

Target client

  • A business owner or senior executive aged 45 and over
  • A salary of $75,000 or over
  • Owns directly or indirectly at least 10% of the shares of the company
  • Has accumulated years of service prior to incorporation of the scheme entitling contributions

Plan type

  • Business: contributions are paid by the employer
  • Defined benefit: benefits are predetermined (an actuary calculates the contributions to guarantee the amount)


Contributions are deductible from business income