CPPP: Created for Physicians, By Physicians
As physicians, we’re used to making decisions under pressure, but when it comes to retirement planning, it’s easy to put things off. Summer is a time to relax, but it’s also the perfect season to reflect. And here’s a sunny thought: what if your pension could work as hard for you as you do for your patients—year-round?
Beach Reads vs. Fine Print
While many physicians are still tucking RRSPs away like sunscreen in a beach bag, that approach often falls short. RRSPs are capped, taxed heavily upon death, and don’t offer the estate protection or tax advantages many physicians could be enjoying.
The Canadian Physicians’ Pension Plan (CPPP) was designed by physicians who wanted more—more deductions, more control, more retirement security.
A Personal Pension Plan is the Summer Vibe You Didn’t Know You Needed
Think of your CPPP like a piña colada at the end of a long shift: refreshing, earned, and guilt-free. Here’s why:
- 7 Tax Advantages: Unlike RRSPs, the CPPP allows for past service contributions, terminal funding, and more. It’s like getting a second scoop of gelato—on the CRA’s dime.
- Intergenerational Wealth Transfer: Your pension can be transferred to your children without immediate tax, unlike RRSPs that trigger a huge bill upon death.
- Tax-deductible Everything: Contributions, management fees, even interest on borrowed funds used to top up your pension? All tax-deductible to your Medicine Professional Corporation.
- It Survives the Crash: Even if markets suffer, your pension’s benefit remains predictable and protected—because your retirement shouldn’t depend on whether the S&P had a bad year or whether a dictator somewhere in the world got up on the wrong side of the bed that morning.
Catch the Wave: Incorporating Your MPC
Already have a Medicine Professional Corporation (MPC)? You’re halfway there. Your MPC can fund your pension, reduce its taxable income, and avoid the Tax on Passive Income (TOPI) as well.
No MPC yet? Let’s chat. It could be the difference between your money working part-time vs. full-time for your future. We have a corporate clerk standing by to incorporate your own MPC today!
Pro Tip: Sunscreen and Pension Plans Work Best When Applied Early
You don’t have to be nearing retirement to benefit. In fact, the earlier you start, the more powerful the compounding and tax-sheltering becomes. So while you’re enjoying longer days and shorter clinics, take a moment to ask:
Is my RRSP doing enough for me?
Let’s Grab (Metaphorical) Margaritas
At CPPP, we believe in planning with purpose—and enjoying the process. If you’d like to know how much more your MPC could contribute to your future, book a complementary discovery call with one of our pension experts. We’ll run the numbers and show you exactly what your retirement could look like.
After all, summer isn’t just for making memories—it’s for making moves.