Holistic Retirement Planning for Physicians: Beyond RRSPs and TFSAs

As a high-earning physician approaching retirement, the financial decisions you make today will shape your income, lifestyle, and legacy for decades to come. While tools like RRSPs and TFSAs have been effective through the accumulation years, they are only part of a much larger picture.

At Imperial Lifestyle Management, we understand that medical professionals require more than simple tax strategies — you need a comprehensive, future-focused financial plan that accounts for your corporation, your lifestyle, and your family’s future.

If you’re preparing to wind down your practice, now is the time to transition from wealth building to strategic income distribution, preservation, and succession planning.

Here’s how to approach this next chapter with intention and clarity.

1. Corporate Income Planning: Unlocking Value from Your MPC

Many physicians reach retirement with significant retained earnings inside their Medical Professional Corporation (MPC). Rather than defaulting to taxable salary or dividends, a strategic income plan can unlock these assets efficiently and sustainably.

Key considerations:

• Diversified Compensation Strategy
  A tailored mix of salary and dividends can balance your CPP eligibility, RRSP contributions, and overall tax burden.
• Capital Dividend Account (CDA)
  Enables tax-free withdrawals of specific corporate earnings, such as insurance proceeds and the non-taxable portion of capital gains.
• Income Smoothing & Spousal Planning
  Incorporating income splitting, and the strategic timing of distributions can minimize tax spikes and support your household’s cash flow needs. 

When executed properly, your MPC can act as a cornerstone of your retirement income, reducing your reliance on personal savings and ensuring consistency.

2. Personal Pension Plans (PPPs): A Strategic Asset for Incorporated Physicians

For physicians over 40 with stable corporate income, a Personal Pension Plan (PPP) may be the most underutilized planning tool available.

Unlike RRSPs, a PPP is a defined benefit pension plan registered with CRA, designed for professionals with incorporated businesses. Its strength lies in higher contribution limits, corporate deductibility, and long-term security.

Advantages include:

• Larger retirement savings potential as you age
• Full deductibility for your corporation
• Creditor protection — shielding assets from legal exposure
• Option to fund past service years and accelerate tax-deferred growth
• Flexible retirement income streams, including early retirement or family benefits 

With thoughtful design, your PPP can also become a vehicle for succession and intergenerational planning, offering long-term advantages to your family and business partners.

3. Estate & Legacy Planning: Securing Your Impact

Physicians often carry a deep desire to leave a lasting impact — on their families, their communities, and the causes they support. Estate planning ensures your legacy unfolds on your terms, with precision and tax efficiency.

ILM guides clients through several advanced estate strategies:

• Estate Freeze
  Lock in today’s corporate value and direct future growth to a trust or the next generation.
• Dual Will Structures (Ontario and select provinces)
  Separate personal and corporate assets to reduce probate exposure.
• Insurance-Based Estate Tools
  Corporately-owned life insurance can provide tax-efficient liquidity to your estate — and maximize what your heirs receive.
• Philanthropic Planning
  Structured charitable giving can reduce estate tax obligations and cement your legacy with purpose. 

Without proper coordination, your estate could see a significant erosion of value. We build plans that preserve wealth and align outcomes with your deepest values.

4. Distribution Planning: The Retirement Drawdown Blueprint

Transitioning from saving to spending requires more than simple withdrawal formulas — it demands an integrated distribution strategy that balances tax exposure, sustainability, and flexibility.

We guide physicians in answering essential questions:

• What’s the optimal sequence for drawing income (RRSP, TFSA, corporation, non-registered)?
• When should government benefits or corporate distributions begin?
• How can we minimize the risk of outliving capital? 

At ILM, we design multi-decade cash flow strategies that give you clarity, confidence, and control — ensuring your money lasts as long as you do (and beyond).

This Is Not the End — It’s the Peak of Your Financial Life

You’ve spent a lifetime mastering your craft, earning your success, and building significant wealth. Now, as you approach retirement, it’s time to ensure your wealth serves you just as you’ve served others.

Your RRSPs and TFSAs played their role. But now it’s time for a coordinated plan — one that blends corporate income planning, pension strategy, estate preservation, and retirement income distribution into a single, elegant financial structure.