beyond MD with Dr. Yatin Chadha Ep #99 - Comparing Pension Plans for Incorporated Doctors - with Sean Wilson & Navaz Cassam
Sep 11, 2025
In this engaging discussion, Sean Wilson, a Certified Financial Planner and founder of Moraine Wealth Advisory, teams up with Navaz Cassam, President and Chief Actuary of GBL Inc. They dissect the complexities of pension plans for incorporated doctors, focusing on the Individual Pension Plan (IPP) and the Healthcare of Ontario Pension Plan (HOOPP). Topics include the advantages of tax-deferred funding, the impact of defined benefit formulas, and the flexibility of IPPs. Listeners gain valuable insights into maximizing retirement benefits and making informed financial decisions.
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Pension Basics For Incorporated Doctors
- A pension requires an incorporated business and T4 salary to qualify and contributions are tax-deductible.
- Once inside, funds are invested and controlled by plan rules, so know investment, cost, and death-payout mechanics.
How The IPP Benefit Formula Works
- An IPP typically uses a 2% of earnings per year of service formula to calculate retirement benefit.
- For 30 years at $100,000 earnings, that roughly yields a $60,000 annual pension.
HOOP Contribution And Benefit Structure
- HOOP uses 1.5% up to YMPE and 2% above YMPE (employee), with employee contributions of 6.9%/9.2% and employer matching.
- Incorporated doctors effectively fund both employee and employer portions, raising total corporate cost.