Pooled Registered Pension Plans

Jun 14, 2019

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Marianne Brimmell

A retirement savings option for REALTORS®

REALTORS® in BC are generally classified as self-employed. Self-employed individuals who don't have access to a workplace pension plan need to consider other retirement savings options. A Pooled Registered Pension Plan (PRPP), which pools your assets with those of others to reduce administration costs, is one option that you may want to discuss with your financial advisor.

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PRPPs in a nutshell
Recently introduced by the federal government, a PRPP is a deferred income savings plan designed for smaller businesses and self-employed individuals. Similar to a Registered Retirement Savings Plan (RRSP), PPRP investment earnings accumulate on a tax-deferred basis. Income tax is not paid on funds contributed to the PRPP until the funds are withdrawn at retirement. The maximum amount you can contribute to your PRPP account within a given tax year is determined by your RRSP deduction limit.

PRPPs are also portable and not tied to a workplace, meaning they can be carried from job to job and are an option if you're self-employed.

How to open a PRPP account
Unlike many workplace pensions, a PRPP is not managed by an employer but by a PRPP administrator and you can open a PRPP account by contacting a PRPP administrator directly. Check with your local financial institution or insurance company to find a PRPP administrator.

While a PRPP is one option for retirement savings, there are many options available and your financial advisor can help determine the best option for you.

For more information on PRPPs, click here (see "Guide for British Columbia Members" and "FAQs").

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