Retirement planning evolves throughout your dental career. Decisions in your 30s build the foundation, while your 50s and 60s focus on refinement and transition. Knowing what to prioritize at each stage helps you work toward a secure retirement.

Your 30s: Build Your Foundation

Maximize Your RRSP Contributions

Your 30s are key for establishing long-term habits. Contribute up to 18% of your earned income to your RRSP, within CRA limits. For example, a $150,000 income allows $27,000 in annual, tax-deferred contributions.

Starting early significantly increases long-term growth. Contributing $20,000 annually from age 30 typically results in far greater retirement savings than starting at 40.

Establish Your Professional Corporation

If you haven’t already, set up your professional corporation. This structure lets you split income with family members in lower tax brackets and retain earnings within the corporation at lower corporate tax rates. Provincial rules vary, so work with a dental-specialized accountant who understands these regulations.

Your professional corporation becomes the foundation for advanced tax planning strategies you’ll use throughout your career.

Start Building Emergency Reserves

Set aside three to six months of operating expenses in a high-interest savings account. Your practice faces unexpected equipment failures, staff turnover, and seasonal revenue fluctuations. This reserve protects your retirement contributions from being derailed by short-term cash flow issues.

Your 40s: Accelerate and Diversify

Consider an Individual Pension Plan

By your 40s, your income typically peaks. You’re likely earning $250,000 to $400,000 as a practice owner. This is when an Individual Pension Plan (IPP) becomes particularly valuable. Unlike RRSPs, IPPs allow you to contribute up to 65% more toward retirement, with contribution amounts based on your income and years of service.

IPPs are designed specifically for incorporated professionals like dentists. They provide structured retirement savings with significant tax advantages and are ideal for dentists aged 40–65 with higher incomes.

Maximize Both RRSP and TFSA Contributions

Continue maximizing your RRSP contributions while also filling your Tax-Free Savings Account (TFSA). The TFSA lets your investments grow completely tax-free, and you can withdraw funds without affecting your taxable income in retirement. This creates tax diversification that gives you flexibility in your 60s and beyond.

Invest in Your Practice Value

Your practice is likely your largest retirement asset. Focus on systems that increase its value: strong patient retention above 85%, collection ratios of 98% or higher, and overhead between 60–65%. These metrics directly impact what buyers will pay when you sell.

Document your processes, build a skilled team, and create systems that don’t depend entirely on you. A practice that runs smoothly without the owner present commands a premium price.

Your 50s: Transition Planning Begins

Optimize Your IPP Strategy

If you established an IPP in your 40s, your 50s are when it delivers maximum value. Contribution limits continue to increase with age, allowing you to make substantial catch-up contributions. Even with varying cash flow, you can adjust between contributing to your IPP and other retirement vehicles.

Work with your dental-specialized accountant to ensure your IPP is properly funded and positioned for your retirement timeline.

Calculate Your Retirement Number

Determine exactly how much you need to maintain your desired lifestyle. Most financial planners suggest you’ll need 70–80% of your pre-retirement income. If you’re earning $300,000, plan for $210,000 to $240,000 annually in retirement income.

Factor in your RRSP, IPP, TFSA, CPP, OAS, and the proceeds from your practice sale. Understanding your number helps you make informed decisions about when you can actually retire.

Develop Your Succession Plan

Whether you’re selling to an associate, a corporate group, or an external buyer, start planning five to seven years before your target retirement date. Practice values have changed significantly in recent years, with corporate buyers often paying premiums for well-run practices in strategic locations.

Work with a practice transition specialist who understands dental valuations. They can help you identify areas to improve before listing and connect you with qualified buyers.

Your 60s: Execute Your Plan

Navigate RRSP to RRIF Conversion

You must convert your RRSP to a RRIF by December 31 of the year you turn 71. This triggers mandatory minimum withdrawals starting the following year. Plan this conversion carefully, as the timing affects your taxes, OAS eligibility, and how long your savings last.

Consider converting portions of your RRSP to a RRIF earlier if you’re in a lower tax bracket between ages 65–71. This reduces your RRIF balance and future mandatory minimums.

Manage OAS Clawback Risk

High-income dentists need to watch the OAS clawback threshold. In 2026, the clawback begins at $95,323 in net income. Your RRIF withdrawals, combined with CPP and other income sources, can easily push you over this threshold, reducing your OAS benefits.

Strategic withdrawal planning and income splitting with your spouse through pension splitting can help you minimize this clawback and keep more of your government benefits.

Time Your CPP and Practice Sale

Delaying CPP until age 70 increases your benefit by 42% compared to taking it at 65. This only makes sense if you have other income sources to bridge the gap. Your practice sale proceeds, RRIF withdrawals, and TFSA can provide this bridge income.

Most dentists sell between ages 60–65. The key is selling when your practice is at peak value, not when you’re burned out and the practice has declined. A well-timed sale can mean the difference of hundreds of thousands of dollars. Maintain strong patient relationships and production levels right through the transition.

Plan Post-Retirement Healthcare

You’ll lose your practice’s group benefits when you retire. Budget for individual health and dental insurance, or ensure your spouse’s benefits can cover you. Healthcare costs rise as you age, and planning for these expenses protects your retirement savings from unexpected erosion.

Your Retirement Deserves Dental-Specialized Expertise

Retirement planning for dentists requires strategies tailored to Canadian tax rules and practice ownership. From IPPs to OAS clawback planning and practice transitions, specialized guidance makes a measurable difference.

Dental Tax works exclusively with Canadian dental professionals, helping you navigate each stage with clear, tax-efficient strategies.

Ready to optimize your retirement plan? Contact Dental Tax today.