IPP vs RRSP Calculator for Incorporated Owners | Dundas
Free Tool for Incorporated Owners 40+

The IPP vs RRSP Calculator

An Individual Pension Plan (IPP) is a pension your corporation sets up and funds for you. Unlike an RRSP, the room grows as you get older. Enter three numbers to see roughly how the two compare for you, this year and every year to 65.

Tell me about you
IPPs usually start to beat the RRSP somewhere in your 40s.
Salary only. Dividends don't create any IPP room.
Only years since 1991 count toward buying back past service.
This year
Extra room an IPP could give you this year
$0
RRSP limit
$0
18% of salary, up to the 2026 maximum.
Estimated IPP contribution
$0
Paid and deducted by your corporation.
How we calculated this
Every year to 65
Yearly room at each age — IPP (estimate) vs RRSP
IPP contribution (estimate)
RRSP limit
Extra room from now to 65
$0
Estimated pension at 65
$0
Catching up
Is it right for you?
  • You need a T4 salary. The IPP is built on salary. If you only pay yourself dividends, there's no room.
  • It replaces most of your RRSP room. Once you're in an IPP, your yearly RRSP room drops to about $600.
  • The money is locked in. It pays you a pension at retirement, not cash you can pull out early. Pension income is taxable when you receive it.
  • It has running costs. Setup, yearly administration and an actuarial valuation every three years. The corporation pays and deducts them.
  • It's a commitment. If the plan's investments fall short, the corporation may have to top it up. If they do well, contributions can pause.
Edit assumptions
2026 maximum RRSP contribution
2026 defined benefit limit (1/9 of the $35,390 money purchase limit)
Pension earned per year, as a % of salary
CRA-prescribed for owner-controlled plans
CRA-prescribed for owner-controlled plans
Cost at 65 of $1/yr of pension, indexed 4%/yr for life (single life, no guarantee)

Is the gap big enough to be worth it?

This calculator gives you a rough number. Whether an IPP makes sense depends on your salary history, your plans for the business, and what else your corporation is doing with its cash. That's a 30-minute conversation, and if the honest answer is “stick with your RRSP,” you'll hear it.

Book a Free 30-Minute Fit Session Free live webinar: IPPs explained · Tue Oct 6, 7 PM ET

Free. No obligation. If an IPP fits, we introduce you to an actuary to price the plan.

Understand what's behind these numbers: Individual pension plans

For discussion purposes only. These are illustrative estimates, not an actuarial valuation, and not tax, legal, or investment advice. Real IPP contributions are set by an actuary and depend on your full salary history, your age, the plan's design, investment returns, and CRA's funding rules. Growth inside the plan is tax-sheltered, not tax-free: pension payments are taxable when received. Review any plan with your accountant before acting.