What are the advantages and disadvantages of the IPP compared to an RRSP?
The advantages of the IPP are: a) Higher contribution amounts; b) Creditor-proof assets; c) Flexible benefit settlement options; d) Higher investment standards — e.g., maximum of 10% invested in any one company; and e) Deficits can be made up using pre-tax dollars. The disadvantages of the IPP are: a) No access to funds while employed; b) Locking-in; c) More legislation, therefore higher expenses; and d) Excess Surplus may reduce future contributions.
