An advisor’s guide to Individual Pension Plans

By Staff | November 16, 2011 | Last updated on November 16, 2011
2 min read

Business owners face monumental challenges. While they are focused on making their enterprise a success, they may let their personal financial plan fall by the wayside.

They could sell their business outright to fund retirement, but if they want to keep it in the family, that could prove problematic.

Enter the advisor who understands the Individual Pension Plan (IPP). The IPP can be a powerful vehicle for building tax-efficient wealth for the future, while the entrepreneur is still at the wheel.

Building wealth with an IPP

An individual pension plan can be an effective vehicle for funding a business owner’s retirement and minimizing their personal taxes. It can also play a part in corporate tax planning. And yet it remains something of a rarity in Canada.

IPPs still viable

The 2011 Federal Budget included changes to the age 72 distribution requirements of Individual Pension Plans (IPPs). More importantly, it also affected past service contributions, which now must be made by first transferring unused RRSP room or actual RRSP assets to the IPP.

The IPP advantage

If your clients are business owners, senior executives or incorporated professionals constantly disgruntled with having to shell out hefty tax dollars year after year, now’s the time to talk to them about Individual Pension Plans (IPPs).

Small business owners need better advice

Small business owners are often considered the backbone of the local economy. Taking enterprise value into account, it is no surprise that their net worth tends to be among the highest in their community, making them prime targets for prospecting advisors.

Tax tips for the business owner

Canadians like to complain about high taxes and the CRA, but despite these grumblings, there are some legitimate tax-planning strategies and opportunities for business owners.

Aging entrepreneurs ponder retirement

I was thinking about transitioning wealth while watching Godfather II the other day. Mafia kingpin Michael Corleone was commenting on his elderly rival Hyman Roth: “He talks to me as a son; as his successor…but the old man thinks he’ll live forever.”

When not to IPP

While individual pension plans can be a sound solution for some entrepreneurs and executives, when it comes to retirement planning, one size never fits all. staff


The staff of have been covering news for financial advisors since 1998.