Reflections from Simone Reitzes, Managing Director, Medicus Pension Plan
Ever wish there was a “re-do” button?
Maybe you started saving for retirement later than planned while you were paying off debt or establishing your practice. Or, it could be you simply didn’t have time to dedicate to financial planning – this is a common challenge in any profession! Physicians move, change course, and evolve throughout their careers and that means you need a retirement savings solution that’s just as flexible.
When I hear the comment, “I’m too old to start building a pension now, right?” it gives me great pleasure to say, in most cases, the answer is no. While some physicians have been joining Medicus early in their careers, others have been joining in their 50s and even in their mid-to-late 60s.
There is no perfect age to join… let me tell you why. One of my favourite features available to Medicus members is called a pension buyback. (And while it’s not a re-do button per se, it really can have the same impact!)
What is a pension buyback?
If you worked as an incorporated physician before joining Medicus, you will have periods when you weren’t contributing to or earning a pension. A buyback lets you fill those gaps by making a one-time transfer of money into the plan. You’re “buying back” some or all of those years to build a bigger pension that more accurately reflects the years you’ve been practicing.
Who can benefit?
A wide range of physicians can take advantage of this opportunity:
- Been incorporated for a while? If you join later in your career, with just a few years left to practice before retirement, you can significantly increase your pension, going from just a few years of service to 5, 10, or even 20+ years. And that can make a big difference in the pension you receive from Medicus each month for the rest of your life.
- Looking for a savings boost? Even if you still have years of practice ahead, buying back a few years now can enhance the monthly pension you’ll receive down the road.
How to fund a buyback
Physicians often have retirement savings built up in other places, such as RRSPs. You can transfer money from your RRSPs to the plan to increase your pension. It’s a smart way to diversify your savings – giving you a good mix of secure, predictable monthly income (pension) and flexible savings (RRSPs).
Have RRSP contribution room to spare? You can fund your buyback with personal savings and use up this contribution room, maximizing tax efficiency!
Buying back pension comes with unique tax opportunities so it’s a good idea to discuss this with your accountant to make sure you understand your options.
Don’t miss out!
The deadline to join the plan and be eligible for a buyback this year is June 30, 2025. (Hint: if you aren’t enrolled in Medicus, you can start the process here).
Consider this your official invitation to start the buyback process, so you’ll have lots of time to review your options and discuss them with your financial advisor. Medicus will be here to support you every step of the way as you secure even more pension for your future.
Ways to learn more
- Join our webinar on April 8 at 7:30 p.m. ET to learn about the (many) advantages of a pension buyback
- Visit our website to book a one-on-one meeting and have your questions answered
Medicus reserves the right to offer buybacks to plan members for limited periods of time. This limited pension buyback offering is available to physicians who join Medicus on or before June 30, 2025, and who elect to complete a buyback with an event date of June 30, 2025, by submitting a completed option form by September 30, 2025.
Medicus Pension Plan is a registered pension plan. It is registered under the Pension Benefits Act (Ontario) and the Income Tax Act (Canada). Medicus Pension PlanTM is a trademark used under licence. To determine if the Medicus Pension Plan and/or a pension buyback is appropriate for your retirement planning needs and retirement income objectives, please consult with a financial advisor.
