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As an incorporated lawyer, you work for yourself. That doesn’t mean you have to work forever. An RRSP is one way to plan for retirement—but it’s just a start. Here’s why a pension—and maybe even permanent life insurance—belong in the mix.
Part 1: Pay Yourself in Pension
For many mid-career Canadians, the idea of a pension sounds great—if you’ve got one. But most lawyers don’t. In the private sector, where incorporated lawyers work, only one in five Canadian workers has an employer-backed pension—and fewer than one in ten enjoy the stability of a defined benefit plan.1
The Canada Pension Plan (or Quebec Pension Plan) and Old Age Security will give you a baseline, but they were never meant to provide more than a modest share of your retirement income.
The verdict: If you have a personal corporation and were born between the mid-1960s and early 1980s, retirement is 1) coming up fast and 2) entirely on you.
Consider giving the not-so-future you the gift of reliable retirement income.
DBplus: the pension plan for law firms of any size—even one
DBplus, offered through the CAAT Pension Plan, gives incorporated lawyers access to the kind of secure, professionally managed retirement income that public-sector workers have long enjoyed. You choose a contribution rate between 5% and 9% of your gross earnings (matched by your corporation), and your future pension grows with every dollar you invest.
CAAT’s strong financial footing—124% funded, with $1.24 set aside for every dollar promised—means your pension is built on stability, not speculation.
“Lawyers are great at looking out for their clients’ interests,” says Rosalyn Jell, pension specialist at Lawyers Financial. “DBplus helps them look out for themselves—with professional management, predictable income, and the peace of mind that comes from knowing their retirement is in good hands.”
Why DBplus works for incorporated lawyers:
• Predictable income for life—no market swings or DIY investing
• Turnkey simplicity—CAAT handles administration, investments, and governance
• Tax-smart structure—corporate contributions are deductible business expenses
The most compelling reason why DBplus is worth a look: every dollar you contribute is expected to deliver more than three times the retirement income of an RRSP.2
RELATED: 10 reasons your firm’s pension should begin and end with DBplus
PART 2. PERMANENT LIFE INSURANCE: AN UNEXPECTED ALLY
Permanent life insurance is more than insurance—it’s an asset. Like any life insurance policy, your beneficiaries receive a lump-sum, tax-free benefit when you die. But it can also help you build wealth while you’re alive—especially when held inside your corporation.
“It’s an easy decision,” says Mike Brouillard, a consultant at Lawyers Financial. “If you have a corporation and enough of a runway, permanent life insurance can really set you up for a successful retirement—and can eventually help your heirs, too, by covering estate taxes.” According to Brouillard, it’s all about taxes. “When you use permanent life insurance strategically within your corporation, you minimize the tax impact and apply those savings to grow wealth.”
Here’s why it works:
• Lower tax rate: Corporate dollars pay the premium more efficiently than personal income.
• Preserves your small business deduction: Especially helpful if you’re accumulating retained earnings.
• Tax-deferred growth: Like an RRSP, the policy’s cash value grows tax-free until withdrawn.
RELATED: Life insurance in your corporation: What you need to know
We're in your corner.
If you’ve incorporated your practice, you’re among the 17,000 Canadian lawyers who answer only to your clients.3 You control what you do, when you do it, and how you’re rewarded for your work.
We’re here to help you plan the next stage with the same confidence. Connect with a certified financial planner to learn how these solutions can help you shape a retirement that reflects the career you’ve built.
Sources:
1. Statistics Canada, “Pension plans in Canada, as of January 1, 2024,” released on June 24, 2025.
2. Healthcare of Ontario Pension Plan, “The Value of a Good Pension,” 2018.
3. Statistical Report of The Federation of Law Societies of Canada, 2025.
