Building a Personal Pension from Corporate Profits

Client Goal

A successful business owner in her early 50s approached us with a clear objective: she wanted to secure her retirement

by turning corporate earnings into personal wealth—without increasing her salary or dividend income.

With a thriving incorporated business and healthy retained earnings, she was looking for a strategy that would allow her to

extract funds tax-efficiently and build a stable retirement income stream.

Our Solution: Establishing an Individual Pension Plan (IPP)

An IPP is a corporate-sponsored defined benefit pension plan, much like the ones enjoyed by government employees

or workers at large institutions. For incorporated professionals and business owners, it offers a powerful way to

accelerate retirement savings, reduce corporate taxes, and protect assets.

Here’s how it helped this client:

• Her corporation made larger, tax-deductible contributions than what she could put into an RRSP
• She used past service RRSP room to make an additional lump-sum contribution, creating an immediate corporate tax deduction
• The assets in the plan are creditor protected, adding an extra layer of financial security
• Contributions and growth within the plan are tax-sheltered until retirement, allowing her wealth to accumulate more efficiently

A Fully Funded Personal Pension

She now has a fully funded personal pension—paid for by her corporation—without increasing her personal income today. The result is a smarter, tax-efficient way to move corporate dollars into her retirement plan, providing long-term confidence and a clear path toward a secure financial future.