Retirement and Pensions

As a small business owner, you are in charge of planning for your retirement. We understand – along with everything it takes to run a business, the thought of individual pension plans, group retirement savings plans, and company retirement plans can make your head spin. When it comes to your personal retirement goals and those of your employees, there are tools available to help make this process a little easier.

White walls and a hole for a ball to roll past on a white background.

Minimize penalties for keeping money in your company

Retirement and Pensions Team

  • What options do I have for an individual plan?

    Let's shift our focus onto you, the owner of an incorporated business. If you pay yourself a salary, you may wonder how you can free those "trapped" earnings in your corporation. Establishing an individual pension plan can help with that. These plans can allow you to release those trapped earnings and move them into a personal investment account. This account is tax-sheltered and turns into income once you have retired. We would call that a win-win. 

    A few notes to consider:

    • Typically, the right age to consider and assess the benefits of an individual pension plan is 45 years and older 
    • Costs are required to open an individual pension plan, with additional fees typically occurring every three years
    • Individual pension plans are similar to an extra-large RRSP; however, it comes with more complexity due to actuarial and filing costs

    Over time, you can structure your pension plan to allow for certain other employees to join. Look at it this way, as younger employees begin to enter, it will extend the duration of the pension plan, ultimately increasing the benefits of the deferral of tax on the individual assets. 

  • What options do I have for group plans?

    You already know that your employees are a significant contributor to the success of your business. But, besides compensation, recognition, and the annual holiday party, there are other ways to value your staff. For example, providing your employees with a group retirement savings plan not only encourages them to begin planning for their retirement, but it will make both your current and future employees that much more motivated.

Retirement and Pensions Team

Retire on your own terms

As with all financial strategies, suitability depends on your objectives and your values. Start by talking with an advisor that understands your goals to help you get to where you want to go.

An inset grey strip for a ball to roll in, on a white background.

This website is not optimized for Internet Explorer.

For the best experience, please use a newer browser such as Edge, Chrome, Safari, or Firefox.