Individual Pension Plans

Retirement income solutions for professionals, business owners

An Individual Pension Plan (IPP) is an excellent way to increase your retirement nest-egg, while having your company make large tax-deductible contributions.

Castlemark Wealth Management are specialists in Individual Pension Plans. It’s like having a group plan for individuals in the highest tax bracket. If you’re a professional, executive, or business owner, and you’ve maxed out your Registered Retirement Savings Plan (RRSP) contribution room and any employer pension contributions, then an IPP might be the right solution for enhancing your retirement income stream.

Like an RRSP, an IPP is an investment account that accumulates over time to provide retirement benefits. But like a pension plan, the IPP provides certain guarantees. In addition, any amounts you contribute are locked in until you retire. And like a regular pension plan, IPP contributions are determined by actuarial calculations to provide sufficient income at retirement.

KEY BENEFITS OF THE INDIVIDUAL PENSION PLAN*
  • Allows for larger tax deductions than RRSPs – up to 65% more in contributions into your retirement account (see the accompanying graph)
  • If you have maximized your RRSP contributions, the IPP is an excellent way to increase retirement assets and have your company make large tax-deductible contributions
  • Allows a significant tax-deductible contribution at retirement
  • Safer investment rules and limitations compared with RRSPs
  • Allows for additional tax-deductible contributions to be made by the company should the rate of return on plan assets be less than 7.5% a year
  • Pension plan surpluses belong to the member
  • Provides pre-determined retirement benefits
  • 100% creditor-proofing of plan assets
  • No deemed disposition of plan assets upon death of the planholder

* Certain conditions apply.

THE IPP DIFFERENCE…AND THE DIFFERENCE IT MAKES

An IPP lets you contribute more to your retirement assets, and get a hefty tax benefit for your business. Here’s an example of maximum 2011 IPP contributions compared with RRSP maximums. The advantage of an IPP in quickly building retirement assets is clear.

ipp-graph

Individual Pension Plans are federally regulated and are technically complex, requiring special expertise in set-up and administration. That’s where Castlemark Wealth Management comes in. We’ve partnered with one of Canada’s most respected names in pension consulting and administration to provide our IPP clients with top-shelf pension planning and advice.