Group Registered Retirement Savings Plans are similar to an individual RRSP but sponsored by an employer and deducted from payroll. These programs are administered on a group basis by the employer. Often the employer will match the employee’s contribution up to a certain level.
Group RRSP’s offer all the flexibility of an individual RRSP with the advantage of lower Investment Management Fees (IMF’s) as the funds being accumulated are priced on the total group. Investment decisions are made by each individual employee based on their individual needs (age, risk tolerance, investment knowledge).
Investment Choices include:
- GIC’s & GIA’s
- Bond Funds
- Balanced Funds
- Moderate Risk Funds
- Aggressive Growth Funds
*Typically individual securities are not permitted inside the group structure.
Why set up a Group RRSP instead of simply using an individual RRSP?
- Contribution is deducted through payroll.
- Employees get immediate tax relief.
- Lower administrative costs.
- Help your employees – many people have the best intentions but never get started on their own – when it comes off their paycheque… they adapt.
If you want to start a new program or would like an audit to check your current advisors performance we can help.
Contact us today to speak with an advisor.
