Retirement planning isn’t just about numbers — it’s about freedom, flexibility, and securing the lifestyle you’ve worked hard to earn. For incorporated physicians across Canada, the two major players in the retirement savings game are HOOPP (Healthcare of Ontario Pension Plan) and RRSPs (Registered Retirement Savings Plans).
But how do you know which one works best for you, your career, and your corporation?
Let’s break it down — no financial jargon, just straight talk.
What is HOOPP?
The Healthcare of Ontario Pension Plan (HOOPP) is one of Canada’s largest and most respected defined benefit pension plans. Traditionally exclusive to hospital-based employees, HOOPP recently expanded access to include incorporated physicians — a move that could reshape how doctors across the country approach retirement.
Key HOOPP Benefits for Incorporated Physicians:
- Defined benefit: Your retirement income is guaranteed based on your contributions and years of service — regardless of market performance.
- Tax efficiency: Contributions are made through your corporation, reducing corporate tax liability.
- Portability & flexibility: Even if you switch clinics or locations, your HOOPP membership stays with you.
- Low fees & strong returns: As a non-profit pension plan, HOOPP operates with some of the lowest investment fees in the country.
In short? HOOPP offers reliability and long-term stability — and now it’s accessible to you.
What About RRSPs?
Registered Retirement Savings Plans (RRSPs) are the go-to retirement tool for many Canadians. They’re flexible, easy to open, and offer powerful tax-deferral opportunities.
RRSP Highlights:
- You control the investments: Choose from stocks, ETFs, mutual funds, or GICs.
- Tax-deductible contributions: Contributions lower your personal taxable income.
- Tax-deferred growth: Investments grow tax-free until withdrawal — ideally when you’re in a lower tax bracket.
But there’s a catch: RRSPs don’t guarantee income in retirement. Their performance is tied to how well your investments do — which can be empowering, but also risky.
HOOPP vs. RRSP: What’s the Real Difference?
So, Which One is Better?
It doesn’t have to be either/or.
In fact, the most effective strategy often combines both. Many incorporated physicians use RRSPs to maximize flexibility and HOOPP to lock in predictable income — giving them both control and peace of mind. While HOOPP contributions reduce your RRSP deduction room, they offer similar — and often superior — retirement benefits thanks to their defined benefit structure. You’re not missing out on savings; they’re simply being redirected through a different, more stable retirement vehicle. Your annual RRSP deduction limit, adjusted for HOOPP contributions, can always be found on your CRA Notice of Assessment.
That said, joining HOOPP as an incorporated physician is a game-changer. It turns your corporation into a vehicle for building a lifelong, inflation-protected pension. And when structured properly, it can be far more tax-efficient than RRSP contributions alone.
What Should You Do Next?
Every medical practice is unique — and so is your retirement plan.
If you’re wondering how HOOPP fits into your long-term financial picture or whether your current RRSP strategy is still the right move, that’s where we come in.
At MedTax, we specialize in helping physicians like you navigate complex financial decisions with confidence. From tax strategy to retirement planning, we help incorporate structure — and clarity — into your future.
Let’s build a retirement strategy that works for you. Contact us today to get started.
