Over the past few years, I have started offering Group Registered Retirement Savings Plans (GRRSP) to my benefit clients. Group RRSPs are a great way to help your employees start funding their retirement. They are flexible, easy to administer and provide no setup fees to the employer.
What is a Group RRSP?
A group Registered Retirement Savings Plan (GRRSP) is a collection of individual RRSP’s setup by the employer while also being administered by the employer on a group basis typically through an insurance provider (Sun Life, Manulife etc.). Contributions are made through payroll deduction with before tax dollars, the key component to a group RRSP is the matching component. In most structures the employer will match a percentage of the employee’s salary to a maximum amount. For example, an employer may match up to 5% of your salary, if you were making $80,000 and contributed the maximum amount to your group RRSP you would contribute $4,000 and your employer would contribute $4,000, thus creating a 100% rate of return before the money starts earning interest.
The Benefits of a Group RRSP (Employee)
- Tax Break – RRSP contributions reduce the income tax you pay and contributing through payroll deduction your contributions are pre-tax and tax savings are instant.
- Forced Savings – group RRSP are a great way to consistently save each month for retirement, taking the guess work out of when and how much I should contribute.
- Employer Matching – If the matching component is offered by your employer this is a no brainer to invest. You are doubling your money immediately before the money is being invested.
The Benefits of a Group RRSP (Employer)
- Employee Retention.
- Attracting the best talent.
- Financial security for employees and their families.
Who Should I Call to Get Started?
If you would like to discuss a group RRSP, it is always best to first consult with the expert as these policies can be complicated and need to be reviewed.
When you think of experts, you think of Pat McIver at McIver Insurance. Based out of Halifax, NS, I specialize in all types of insurance matters. If you are seeking medical insurance, health insurance, life insurance, group benefits & RRSP or are looking for a better policy we got you covered! A quick, free, and no-obligation chat is all you need to figure out what insurance plan would be best suited to your needs.