Why You Should Work with an Actuary When Considering an IPP

For incorporated professionals and business owners looking to maximize retirement savings and corporate tax efficiency, an Individual Pension Plan (IPP) can be a powerful tool. But while many are drawn to the high contribution limits and creditor protection IPPs offer, one key player is often overlooked in the process: the actuary.

An IPP is a defined benefit pension plan designed for one person (or a small group), typically the business owner or an incorporated professional. It’s registered with CRA , governed by pension legislation, and allows significantly higher annual contributions than an RRSP for older individuals.

But unlike an RRSP, which is straightforward to set up and manage, IPPs are a bit more involved. That’s where an actuary comes in.

An actuary doesn’t just set up your IPP—they help manage it over time. They identify opportunities to maximize the plan and as retirement approaches, an actuary ensures the income streams selected align with both lifestyle goals and tax efficiency.

If you'd like to learn more about IPPs or begin your own, request a free consultation with us today.