Individual Pension Plan - A Plan of your Own
Not everyone has an employee pension plan. If you run your own business, have ownership in a corporation that you work for, or operate a professional practice such as a doctor, lawyer, dentist, etc., then you don’t have an employee pension plan unless you—the owner—create one for yourself!
An IPP is a plan designed to put a business owner on equal footing with Public Sector Executive Pension Plans. It’s simply a DB plan set-up for one person – the owner of the business or a key employee in the business.
Final Thoughts
Know what kind of plan you’re in and understand the risks and responsibilities that it carries. The truth is that no one should depend solely on a single employer pension plan. DB, DC, or MEPP—there’s much more to pay attention to as you approach retirement.
Canadians are living longer, healthier, and more active lives and as a result, retirement has become a longer-term proposition, and potentially a more expensive one.
If you're near retirement, the decisions you make now can have a tremendous impact on your future security. To finance your retirement lifestyle, you'll need to choose the appropriate income options for your individual lifestyle. Remember, you may be relying on this income for the next 30 years or so.
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Disclaimer: The information contained herein is for ON residents only and does not constitute an offer to sell or solicit sales in any other Canadian or foreign jurisdictions.