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There are many misconceptions around IPPs, here are the top 3 we most frequently hear.
You Must Retire at Age 65:
Many people think that Individual Pension Plans (IPP) only allow retirement at age 65 and as such discount considering an IPP. However, an IPP does allow for retirement anytime between the ages of 50-71. Accumulating enough assets in a tax deferred vehicle to fund retirement at such a young age is challenging, however an IPP provides the opportunity for top up contributions to ensure there are enough assets to fund retirement regardless of asset returns.
You Must Maintain an IPP well into Retirement:
Many people think that you must maintain an IPP well into retirement and are concerned with paying the annual maintenance fee indefinitely. However, an IPP may be collapsed at any time and the assets transferred to a registered account (subject to maximum transfer rules). In fact, it is common to collapse an IPP around retirement.
You Must Have a Financial Advisor:
Many individuals are introduced to IPPs through their financial advisors. However, there is a large population who maintain their own financial assets who may not have been introduced to IPPs and are unaware of how to access them. It is possible to establish and enjoy all the benefits of an IPP while managing your own assets. As an actuarial provider and advisor of Individual Pension Plans, we can help establish these plans.
If you'd like to learn more about IPPs or book a free consultation to start your own IPP now, click here.
