Group RRSP Plans
Help Your Staff Feel Better About Their Money
While their eyes might glaze over at the sound of “group RRSP plan”, it’s important for your employees to understand how to save for their future. Financial literacy is an important skill for everyone.
Why Are Group RRSP’s and Pension Plans Important?
We’ve talked a lot about mental and physical health, but your employee’s financial well-being is just as important.
Employees who are saving for their retirement will feel more secure and have greater confidence in their future. And, they’ll appreciate they have an employer who cares about their financial well-being.
We’re here to help!
Group RRSP and Savings Plans
- We work with all major financial institutions to select the best plan for your team.
- Rely on us to help educate your staff on the benefits of a group RRSP plan. We’ll make sure this is not as boring as it sounds. It’s super important they understand all the perks and advantages to participating in a group savings plan.
- We’ll provide online resources, financial calculators and tips to help your staff with their financial literacy.
- We’ll also provide an annual review of your staff’s savings plans. We’ll show where their money is invested and how their funds are doing.
Types of Group Savings Plans
- Group RRSP’s with Employer-Matched Contributions
This is the most flexible way for employees to save for retirement. Our Group RRSP plans are easy to implement and cost very little to administrate. Employee contributions are tax deductible and each employee has flexibility to choose their investments.
- Group Pension Plans
A defined contribution pension plan is similar to an RRSP plan but with slightly different tax and legislative rules. The amount each employee receives in retirement is dependent on market performance.
A defined benefit pension plan provides a pre-determined income throughout retirement, regardless of how the investment’s perform.
- Tax Free Savings Account (TFSA)
A group TFSA is a tax-effective alternative to RRSP’s to help employees save for retirement.
- Deferred Profit-Sharing Plan
A deferred profit sharing plan is a structured way to allow your employees to take part in the success of your company.
Advantages to a Group RRSP
- Employees take advantage of employer matching.
This really adds up! Group RRSP’s help staff save money faster because employee contributions are matched in some way by their employer.
- Automatic Tax-Deductible Savings
Group RRSP plans are tax-deductible forced savings. Your staff will appreciate how easy it is to save money for their retirement because their contributions come right off their pay cheques.
- Access to Lower Management Fees
Group plans qualify for lower management costs because they are a larger fund with greater assets, than a comparable individual plan.
Your Questions About Group Savings Plans, Answered!
If you leave your job for whatever reason, your RRSP savings can be transferred to an individual plan (available at all major banks).
Your group RRSP contributions will likely grow faster than your individual RRSP plan. This is because employee contributions are matched by their employer, and the cost to manage the plan is a lot lower, due to the larger size.
Even though you are participating in a group plan, you can still personalize your strategy based on your own risk tolerance or how close you are to retirement.