Introducing the personal pension plan for the self-employed!
I've teamed up with Integris pension plan management to bring you the PPP. Pension plans provide the best financial security in retirement, but most self-employed individuals and professionals still do not know that they are available for use. Managing a pension plan is very complex, however, I have taken away the complexity of pension plan management so that you, the business owner, can now take advantage of this superior retirement savings option.
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If you are self employed, own your own business (e.g. entrepreneur or franchisee) or you are a professional (e.g. accountant, consultant, dentist, doctor, financial advisor, lawyer, etc.) with your own practice, then you should look into this solution.
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WHAT IS THE PPP?
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The Personal Pension Plan (PPP) is an individual pension plan (a type of retirement savings vehicle) that allows you to invest money for use in your retirement. It is specifically designed for self-employed individuals or professionals who are looking for a more generous alternative to RRSPs for their retirement. If you are a business owner, an incorporated professional like an accountant, consultant, dentist, doctor, financial advisor, lawyer, etc. or a franchise owner, you are eligible to save for your retirement through the PPP. Watch the video below for more information.
For example, let’s say Dr. Metzger and his wife Dr. Jones both work for Max Health Professionals Inc.
Both withdraw a yearly salary of $148,000 with excess earnings paid as dividends.
If they made the maximum RRSP contribution from age 45 to age 65, and earned 5.0%, (paying fees of 1%), their combined RRSPs would be $2.25 Million.
If Dr. Metzger and Dr. Jones had Max Health Professionals Inc. sponsor a Personal Pension Plan for each, using the same assumptions, their combined pension assets would be $3.4 Million.
How much more can be saved in a PPP?
¹ Defined Contribution: A specified percentage of the employee’s yearly salary contributed to the Pension Plan by the employer. Note that it is mandatory for an employer to contribute at least 1% of the PPP® owner’s T4 income to a Defined Contribution account, when the owner selects this option.
² Defined Benefit: A Pension Benefit that is determined by a distinct formula. This formula equals to 2% of the average best three annual salaries indexed to retirement for every recognized year of service. The benefit must not exceed the maximum amount authorized by Income Tax Regulations.
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