People go to work for a lot of different reasons – they love the job, they have fun with their co-workers, or they may be invested in their business’s mission. No matter what gets your employees out of bed in the morning, for most of us, money plays a role. Money might come as salaries, but it can also come in the form of retirement savings.
A group RRSP is a great way to set your business apart when attracting new employees, and giving your workers a reason to stick around. Here are some of the benefits for you as an employer:
- You decide how much money you’ll contribute to your employees’ RRSP.
- It’s generally easier and cheaper to set up and manage compared to a formal pension plan.
- You don’t have to guarantee an income amount for retired employees.
- A group RRSP can complement an existing pension plan.
It shouldn’t come as a surprise, but a group RRSP will also bring big benefits for your employees. Here’s a few of them:
- RRSP contributions are deducted directly from an employee’s paycheque, so they get an immediate tax deduction. If they contributed to a personal RRSP they’d have to wait until tax time to get that deduction.
- If you match your employees’ contributions to the group RRSP, your employees are effectively earning more money.
- It forces your employees to save for their retirement.
- With a group RRSP, your employees own their contributions and they have control over them. There may be some restrictions, but for the most part they can transfer, redeem and add to them as they wish.
If you’re interested in a group RRSP, or if you have questions, give our Contact Centre a call at 1.866.863.6237.