Group Investment Plans
Group RRSPs, TFSAs, and pension plans are key components of a well-rounded retirement savings strategy. Each offers employees unique opportunities to save for retirement, with distinct benefits and considerations. Employers can strengthen their benefits packages by offering these options, equipping employees with valuable tools for securing their financial future. By understanding the features of each plan, employees can make informed decisions to optimize their retirement savings.
Group RRSP (Registered Retirement Savings Plan)
A Group RRSP is a retirement savings plan set up by an employer for its employees, functioning similarly to an individual RRSP but with added advantages as part of a group plan. Employers typically match a portion of employee contributions, helping to increase the amount saved for retirement.
Key benefits include:
- Tax Efficiency
- Employer contributions
- Convenient automatic payroll deductions
- Investment flexibility
- Encourages retirement savings
- Employee retention
A Group RRSP is an effective and tax-efficient way for employees to save for retirement, especially when employers provide matching contributions.
Group TFSA (Tax-Free Savings Account)
A Group TFSA allows employees to save and invest money with tax-free growth and withdrawals. Although typically an individual account, employers can offer it as part of a group benefits package, facilitating contributions through payroll deductions.
Key benefits include:
- Tax-free withdrawals
- Supplementary retirement savings
- Tax-free growth
- Contribute through payroll deductions
Group Pension Plans
Pension plans are employer-sponsored retirement plans that provide employees with income during retirement. They are typically categorized as either defined benefit (DB) or defined contribution (DC) plans.
- Defined Benefit (DB) Plans promise a specific retirement benefit amount based on factors such as an employee’s salary history and years of service.
- Defined Contribution (DC) Plans are retirement savings plans where contributions are made to an individual account for each employee, often matched by the employer.
Why work with us?
We have been in the insurance industry for over 40 years, we will help you understand the best options available in the market and we always work with business owners to:
- Explain the reasons and benefits of implementing a group benefits plan
- Understand their goals and budget restraints
- Solicit quotes from the various insurance carriers to get the best price and product available
- Present a variety of options and assist in selecting the appropriate carrier and product
- Work closely with management and insurance carrier to ensure all necessary paperwork is completed and submitted appropriately and on time
- Once implemented, assist with account maintenance, administration, and the renewal process on a continuous basis
Trust Our Brokers for Expert Guidance. Call us today to discuss your needs and find the best policy for you.