IPP vs. RRSP Comparator

An Individual Pension Plan lets an incorporated owner shelter more than an RRSP ever could, but only once age and T4 salary make the gap worth the extra cost.

Reading This Tool

How To Use This Calculator

Enter your age, T4 salary from your corporation, and how long until you plan to retire.

RRSP room is a flat 18% of earned income up to the annual dollar limit, regardless of age. IPP room is actuarially calculated and grows with age, roughly matching RRSP room before 40, then climbing meaningfully ahead of it. This projects both forward using a simplified age-based approximation of that gap.

Your Inputs

Current Age 48

T4 Salary From Your Corporation $180,000

Planned Retirement Age 65

Expected Annual Investment Return 5.0%

IPP contribution room is actuarially determined by a pension actuary based on your specific age, salary history and plan terms, this uses a simplified age-based approximation for comparison purposes only, not a substitute for an actuarial calculation.

Projected Gap At Retirement

RRSP, Projected At Retirement

IPP, Projected At Retirement

Additional Sheltered By Using An IPP

RRSP vs. IPP Growth To Retirement

RRSP IPP

IPPs require T4 salary income, not dividend-only compensation, and carry real setup and ongoing actuarial costs, often several thousand dollars a year. Below age 40 or below roughly $150,000 in salary, the gap over an RRSP is usually too small to justify that overhead.

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