Case study
An overview of the significant benefit that the IPP can achieve
The IPP is a very judicious way to save for retirement if certain conditions are met. This is why it’s important to know that the benefits of the IPP depend on your profile. All the information requested in our illustration can modify the benefits that the IPP can provide you.
Here is a comparison of the maximum RRSP and IPP contributions by age.
| Age | Max RRSP Contribution | Max IPP Contribution | IPP Advantage ($) | IPP Advantage (%) |
| 45 | $31,560 | $36,100 | $4,540 | 14 % |
| 50 | $31,560 | $39,600 | $8,040 | 25 % |
| 55 | $31,560 | $43,500 | $11,940 | 38 % |
| 60 | $31,560 | $47,800 | $16,240 | 51 % |
| 65 | $31,560 | $52,500 | $20,940 | 66 % |
Here is a case study that will give you a glimpse of the multiple benefits of the IPP.
Client Information:
- Client’s age: 55
- Salary History (T4) : Salary of $180,000 in 2024.
- Years of credit for past service: 20 years
- Unused RRSP room at end of previous year: $0
- Most recent RRSP market value: $500,000
With an IPP in place, this client would benefit from the following outcomes:
Maximum annual contribution*
$43,000
2024
$46,000
2025
$50,000
2026
RRSP transfer required
$469,000
Special past service contribution*
$394,000
*These amounts are tax-deductible for the corporation.
This is just one of an infinite number of scenarios. Therefore, producing a personalized illustration based on your information will give you a clear picture of how an IPP can benefit you!