Comparing Individual Pension Plan (IPP) and Medicus: Choosing the Right Financial Path

IPP vs Medicus: Why the IPP is the Smarter Retirement Strategy for High-Income Professionals

For incorporated professionals, especially physicians and business owners, the question often comes down to where to build long-term, tax-efficient retirement wealth. Two popular options are the Medicus Pension Plan and the Individual Pension Plan (IPP). Both aim to reduce taxes and create future income, but one clearly stands out when you look at control, flexibility, and total wealth preservation — the IPP.

1. Bigger Contributions, Bigger Tax Deductions
Medicus limits annual contributions to about 18% of capped earnings (roughly 33,800 in 2025).
An IPP allows much larger, age-based contributions, starting around 55,000 at age 56 and climbing to over 70,000 annually by age 66 to 70.

That means thousands more in annual tax deductions directly through your corporation. Over a decade, this adds up to hundreds of thousands in additional corporate tax savings, all compounding inside a protected, creditor-proof pension.

2. Investment Control and Flexibility
Medicus invests your funds in a pooled structure, giving you no say in where the money goes.
With an IPP, you control the investment strategy. You can use mutual funds, managed portfolios, or Shariah-compliant investments tailored to your goals.

This flexibility is crucial for high-net-worth professionals who want their retirement capital working efficiently, not sitting in a conservative pool.

 3. Estate Preservation and Family Continuity
When you pass away under Medicus, your spouse might receive a small survivor pension, but the rest of your capital stays in the plan.
With an IPP, your estate keeps the value. Remaining assets pass to your spouse or children inside your corporation, maintaining full estate value and avoiding double taxation with proper planning.

It is not just a retirement plan — it is a multi-generational wealth tool.

 4. Tailored for High Earners, Not the Average Employee
Medicus is one-size-fits-all, built for average professionals, not top earners. It fails to optimize deductions for higher T4 incomes.
An IPP is custom-built by actuaries to maximize corporate deductions while securing a guaranteed retirement income target.

This makes the IPP a precision-designed strategy for professionals who demand efficiency.
 
5. Transparency and Control Over Fees
Medicus hides its fees inside the fund structure, so you never see what you’re paying.
IPPs are fully transparent. Actuarial fees, around 1,700 per year, are 100% deductible to the corporation, and you know exactly where every dollar goes.

You’re paying less for more control, more flexibility, and more long-term benefit.

 7. The Bottom Line
Medicus is fine if you want simplicity and no involvement.
But if you’re a high-income professional who wants maximum deductions, estate protection, and investment flexibility, the IPP is in a completely different league.

It’s not just about retirement — it’s about building, protecting, and transferring wealth the smart way.

 
Final Thought
If you’re earning over 150,000 annually and own your corporation, you owe it to yourself to explore how an IPP can transform your retirement and reduce your taxes — legally, predictably, and efficiently.