Canada · Retirement planning
Individual pension plans for incorporated owners
Questions about funding, administration and fit before establishing a pension plan.
By Preserve Wealth Group · Sources checked September 22, 2026
A registered pension arrangement
An individual pension plan, or IPP, is generally a defined-benefit registered pension plan established for an individual or a small group. Funding and benefits are governed by pension and tax rules. It is not a contribution account with a limit an owner can choose freely.
Ask for calculations using your own history
Bring compensation records, age, service history and existing retirement arrangements to a qualified pension specialist. Ask what benefits and contributions are permitted, how past service would be treated and what obligations arise for the corporation.
Include the ongoing work
The comparison should cover establishment costs, administration, actuarial work and funding requirements. Rules can restrict contributions, including when a plan has excess surplus. Do not assume a quoted annual contribution can continue unchanged indefinitely.
Consider the business alongside retirement
Ask how the arrangement works if profits fall, the business is sold or retirement timing changes. Compare it with alternatives based on the owner’s actual needs. The episode with Rick Machtinger is a starting point for that discussion, not a determination that an IPP is suitable.
Questions to bring to your specialist
- What does my compensation history support?
- What are the ongoing costs and obligations?
- What changes if I sell or profits decline?
First consultation free. If you qualify, our team calls to confirm your details before reviewing an advisor match.
Sources and scope
Educational information for Canadian business owners. Tax treatment and suitability depend on your circumstances. Review a proposed strategy with appropriately licensed financial, tax and legal professionals.