Group RRSP Program
Employers are finding that Group Registered Retirement Savings Plans (RRSPs) are an attractive, virtually cost-free, addition to their Employee Benefit Program.
RRSPs, whether group or individual, have one major purpose: to allow investments to grow in a tax-deferred shelter until retirement.
Group RRSPs offer a definite advantage over individual RRSPs as the contribution to the RRSP can be deducted through payroll (using pre-tax dollars), resulting in an immediate tax savings.
The total asset pool of the Group RRSP is larger than an individual may have, resulting in a lower annual fee and therefore more growth. For the employer, there is no obligation to contribute to the plan and no cost to administer beyond remitting monthly employee contributions.
or the employee, it offers a wide range of investments, flexibility, professional money management, full and immediate investing, 24-7 access to the account as well as the payroll deductions and reduced taxation mentioned earlier.
By sponsoring a Group RRSP, the employer is providing staff with an attractive and simple method for tax planning and retirement savings.
