What is a Pension Plan?

A pension plan is a retirement savings plan that provides income to individuals during their retirement years.

In Canada, pension plans are typically sponsored by employers, but individuals can also set up individual pension plans.

Please learn more below about the different types of pension plans available in Canada, who needs a pension plan and how we can help you build your perfect pension plan, for the perfect retirement.

Types of Pension Plans in Canada

Defined Benefit Pension Plan

A defined benefit pension plan promises a specific retirement income to its members, based on a formula that takes into account the member's years of service and salary history. The employer is responsible for making contributions to the pension plan to ensure that there is enough money to pay the promised benefits.

Defined Contribution Pension Plan

A defined contribution pension plan, on the other hand, is a savings plan where the employer and/or employee makes contributions to the plan, and the retirement benefit is determined by the amount of money saved in the plan, investment returns, and the fees charged. The investment risk is borne by the employee, rather than the employer.

In addition to these two main types of pension plans, there are several other types of plans in Canada, including:

Individual Pension Plan (IPP)

An IPP is a defined benefit plan for self-employed individuals and incorporated professionals. The plan is sponsored by the individual's own corporation, and the retirement benefit is based on a formula that takes into account the individual's years of service and salary history.

Personal Pension Plan (PPP)

A PPP is a defined benefit plan for self-employed individuals and small business owners. The plan is sponsored by a financial institution, and the retirement benefit is based on a formula that takes into account the individual's years of service and salary history.

Retirement Compensation Arrangement (RCA)

An RCA is a non-registered, tax-deferred savings plan for executives and high-income earners. The plan is sponsored by the employer, and contributions are made on a tax-deductible basis. The retirement benefit is based on the value of the assets in the plan at the time of retirement.

Employee sponsored Defined Contribution Pension Plan (DCPP)

An employee-sponsored DCPP is a type of defined contribution plan offered by an employer to its employees. The plan is funded by contributions from both the employee and the employer, and the retirement benefit is based on the value of the assets in the plan at the time of retirement.

Overall, pension plans are an important source of retirement income for many Canadians. It's important to carefully consider the type of plan that's right for your needs and to work with a financial advisor to help you make informed decisions about your retirement savings.

Why is having a Pension Plan Important?

As Canadians are living longer than ever before, retirement planning has become increasingly important.

One key aspect of retirement planning is selecting the right pension plan, which can provide a reliable source of income during retirement years. In addition to offering financial security, pension plans also offer significant tax benefits and professional investment management.

Our Approach to
Pension Plans

Mitch McLean believes that every Canadian should have an opportunity to participate in a pension plan and create wealth for their future whether they work for the Government, a public company, a private company, or self employed.

A pension plan can be an essential part to obtaining financial freedom by providing stable income to take some of the guesswork out of retirement income planning. Utilizing Private investments, within your pension plan, can be beneficial, as private investments have several key differences from public securities.

Unlike public securities which are tradable every business day, and are marked-to-market every minute, or every day, private and alternative investments:

- Dampen overall portfolio volatility as they are not marked-to-market daily

- May have high long-term growth potential

Role Models

The world's most successful investors, such as Warren Buffett, and large institutions, like the Canada Pension Plan (CPP), have achieved their impressive track record by diversifying their investment portfolios across a mix of public, private, and alternative investments.

At Mandeville Private Client Inc, we recognize that many individual investors share the same investment needs and goals as these role models. That's why we seek to emulate their investment strategies by offering our clients access to high-quality traditional public investments, which provide liquidity and an opportunity for long-tern growth, as well as private and alternative investments, which have the potential to dampen volatility and provide long-term growth.

By providing a range of investment options across different asset classes, we aim to help our clients achieve their financial objectives while minimizing risk. We believe that a diversified portfolio is key to successful investing, and we strive to offer our clients the same access to a well-rounded investment mix as the world's most successful investors and institutions.

Provide Access

Mandeville Private Client Inc's Private Mandates offer investors the opportunity to access private investments that were previously only available to a select group of wealthy investors.

This approach allows us to democratize access to private investments for all investors. Before April 2015, only accredited investors - those with a high net worth or income - were able to participate in private/alternative offerings.

However, securities rules changed in April 2015, allowing investors who do not meet the accredited investor definition to invest in these offerings through a registered portfolio manager.

At Mandeville Private Client Inc. our Private Mandates provide our clients with access to private investments that were previously inaccessible to many investors. These investments have the potential for significant long-term growth and diversification benefits.

At Mandeville Private Client Inc., we believe that democratizing access to private investments is an important step towards creating a more inclusive and fair investment landscape. Our Private Mandates allow investors of all backgrounds to benefit from the potential opportunities of private investments and to take advantage of the potential for diversification in their investment portfolios. A

Disciplined Framework

Finally, we provide the framework for investment that emulates the strategies of the world's most successful institutional investors and wealthy families. By diversifying across a mix of public and private investments, these investors have created lasting wealth over the long term.

Our goal is to democratize private investment opportunities for wealth creation by providing our clients with access to quality private investments that were once only available to the ultra-high net worth and institutional investors.

Through our Private Mandates, we offer clients the potential for significant long-term growth and diversification benefits. We use disciplined investment techniques to ensure that our clients' portfolios are well-diversified and aligned with their long-term financial objectives.

By following in the footsteps of the world's most successful investors, we aim to provide our clients with the best possible investment framework to help them achieve their financial goals.