IPP Contribution Estimator
Compare estimated Individual Pension Plan contributions against RRSP limits based on your age and T4 income. See how much additional tax-sheltered retirement savings an IPP could provide.
Your Information
T4 employment income from your corporation. IPP benefits cap at $181,000 for 2025.
Years with the same company or related employer (back to 1991). Affects the initial past service contribution.
Your Estimated Numbers
One-time, tax-deductible corporate contribution when the IPP is established.
Past service ($186,050) + annual IPP ($12,403) vs. RRSP ($32,400)
Annual crossover at age 64: IPP annual contributions exceed the RRSP limit starting at age 64, and continue to grow each year until retirement.
Want a formal actuarial estimate for your situation?
Schedule a ConsultationAnnual Contribution Comparison by Age
Based on T4 income of $180,000. IPP contributions increase with age because fewer years remain to fund the pension benefit.
| Age | IPP | RRSP | Advantage |
|---|---|---|---|
| 40 | $6,018 | $32,400 | -$26,382 |
| 45 | $8,640 | $32,400 | -$23,760 |
| 50(you) | $12,403 | $32,400 | -$19,997 |
| 55 | $17,807 | $32,400 | -$14,593 |
| 60 | $25,564 | $32,400 | -$6,836 |
| 62 | $29,542 | $32,400 | -$2,858 |
Projected Accumulation to Age 65
Estimated total value at retirement assuming 7.5% annual return. IPP includes the initial past service contribution of $186,050.
IPP at Age 65
$1,098,443
RRSP at Age 65
$846,235
These estimates use a simplified actuarial model with a 7.5% discount rate and standard mortality assumptions. Actual IPP contributions are calculated by a qualified actuary based on your specific circumstances, including your complete T4 earnings history, investment performance, and the terms of the pension plan.
This calculator is provided for educational and illustrative purposes only. It does not constitute financial, tax, or pension advice. Consult with a licensed financial professional and a qualified actuary before making decisions about an Individual Pension Plan. Five Ridge Financial Ltd. is based in Alberta, Canada.
Learn More About Individual Pension Plans
Read our detailed guide on how IPPs work, who they benefit most, and what to consider before setting one up.