Group Retirement Savings Plan

Includes group RRSP benefits & group DPSP benefits.

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5.0 Stars
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5.0 Stars

Group RRSP: Saving for the future

Owning a business is a large investment. Not only you are investing in the success of the business, but you are also investing in the employees you hire to help your business achieve success over time. One effective way to reward your employees for being productive and contributing to the success of the business is through a group registered retirement savings plan.

What is a Group RRSP plan?

Before we jump to Group RRSP let discuss first what is RRSP in Canada means.

To answer it clearly, well there’s no much better answer that we can get out there than the source. According to the Canada government website:

Registered Retirement Savings Plan

or simply RRSP is a retirement savings plan that you (Canadian) establish, that we (government) register, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax. Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.

In layman’s terms, RRSP is like a superhero of modern retirement planning that started to rescue each Canadian since 1957.

Now that we’re all cleared about RRSP, let dig differ now to RRSP for employed Canadian.

Also known as Group RRSP, a Group Registered Retirement Savings Plan is an employer-sponsored retirement savings plan administered on a group basis. It’s identical to individual RRSP but only set up by your employer.

Most companies offer their staff the opportunity to join the group RRSP, and participation is optional. Each employee who decides to opt-in receives their RRSP account and full autonomy over how their money is invested. Many plans have members complete a questionnaire beforehand to determine their preferred investment strategy and simultaneously build an investor profile.

Contributions to the group RRSP are automatically deducted from each employee’s paycheque, and the maximum contribution limit in 2019 is 18% of a contributor’s total earned income. Employees also have the option to purchase their RRSP to build up their retirement savings even further.

Why should I get Group RRSP for my employees?

Some Canadians are not naturally inclined to save money, which can prove to be detrimental in later life. With a group RRSP, employees are forced to build up their savings, as the contribution is automatically deducted from their paycheque. Also, the fees for managing this group account are relatively low as compared to those associated with individual RRSPs. On average, the management fees for a group RRSP tend to be less than 1%.

In addition, some employers choose to match their employees’ group RRSP contributions, effectively allowing employees to double their savings. All contributions matched by employers are also tax-deductible for the employees.

Employer’s benefits of having a Group RRSP include:

  • Employee retention
  • Using them to attract the best talent
  • Financial security for employees and their families
  • Using them to demonstrate concern for your employees outside of work

Group RRSP vs Individual RRSP

In a simple definition, a Group RRSP is just like an individual RRSP but offered through your employer or place of work. It features tax-deductible contributions and tax-deferred growth. The main difference in terms of advantages is that your employer adds to the equation and this difference can be substantial. Also unlike an individual RRSP, members of a Group RRSP are not generally permitted to purchase individual securities.

This group plan is very flexible in terms of how money is received at retirement. The policy member has the option of taking the money as cash, purchasing a life annuity, purchasing a fixed-term annuity or purchasing a Registered Retirement Income Fund (RRIF).

Group RRSP advantages

  • Automatic deductions through payroll for the contributions
  • Low minimum deposits
  • Low to none administrative costs
  • Flexible in terms of eligibility and contribution levels
  • Income splitting is optional for a married employee
  • Have an option for Enhanced RRIF and annuity rates at retirement

Group RRSP disadvantages

  • Employer contributions are taxable
  • Limited investment option
  • Shared control (or limited) to withdraw funds
  • The plan may be cancelled at any time by the employer

Where can I get a Group RRSP in Canada?

Group Registered Retirement Savings Plans are generally administered by major banks and are also available from licensed insurance brokers. FREE Group RRSP quotes are also available (by clicking the button above) to help you compare the offerings from major insurance providers before you decide.

Our Reviews

Excellent5.0 ★★★★★ George has been wonderful walking us through all the information and helping us complete the application.Miss. LizMiss. Liz ★★★★★ Exceptional service. Excellent attention to the details, Definitely, insurance made easy. Excellent explanatory brochures and emails. Really made it easy. Not the lowest price but the best value for our company and employees.Ed RomanowskiEd Romanowski ★★★★★ Very pleased with the service received. In particular, the professionalism of staff and seamless process it took to have staff benefits sorted. Thank you!Kikoo NdhlovuKikoo Ndhlovu ★★★★★ An absolute pleasure to work with, very helpful and patient.answered all questions without hesitation,Highly recommended !!joann rabyjoann raby ★★★★★ Smooth easy sign up, courteous professional service. The process was quick, the representative was knowledgeable. Overall, I would recommend this service as I have no complaints.Paul BeattiePaul Beattie ★★★★★ Made the whole process of signing up a new company a breeze! Very knowledgeable and professional!Rodney CharltonRodney Charlton ★★★★★ They are very easy to deal with and they communicate very professionally.Lou BrattyLou Bratty ★★★★★ Knowledgeable and helpful.Ian SmithIan Smith ★★★★★ Easy to set up. George who helped me set up the insurance for our group and punctual and knowledgeable. Great prices too! Highly recommend this place for your insurance!YoonseYoonse ★★★★★ Customer service is awesome. The entire process was made very simple.Jennifer RJennifer R ★★★★★ George was quick, straightforward with all options layed out easy to understandDavid BrowneDavid Browne ★★★★★ Very happy with the service and the professional experience!Arash AminArash Amin ★★★★★ We had great customer service from our representative. George walked us through the entire process and answered all our questions.John McGrathJohn McGrath ★★★★★ I just contracted contracted the health insurance services with GroupEnroll for my company and they were amazing! Clear, fast, excellent guidance about services and prices. Very satisfied.Gisele BrazGisele Braz ★★★★★ Had a great experience and was well serve by George Solomonov.Jason LowryJason Lowry ★★★★★ I recently just got group insurance through Alliance Income and it was a vey smooth , simple , straight forward process. I would 10/10 recommend to anyone looking for insurance plans. They went above and beyond sending multiple different plans that suited our needs. Very impressed.S.K.R maintenance LTDS.K.R maintenance LTD ★★★★★ I’m very happy with how quickly I was given options for my company and how easy it was to set up our company benefit plan.Reasonable pricing for product/service provided.Robin AllenRobin Allen ★★★★★ This company is very helpful and reasonable with there quotes.The agent I had help me pick the best packages for my company and was very knowledgeable on the offers.Highly recommend this companyDaniel Joseph RichieDaniel Joseph Richie ★★★★★ GroupEnroll helped me and my family get fantastic group benefits for my small business.Ken WatsonKen Watson ★★★★★ Very impressed with the knowledge and guidance our company received regarding new health benefit packages for our employees. So glad we chose them, I can confidently say we are in good hands.BELL ELECTRICBELL ELECTRIC ★★★★★ nicely explained and keep up the good workAliments KitchenAliments Kitchen ★★★★★ Had the best and easiest experience possible. Our Company was looking for Group Benefits and Googled this service and was impressed by GroupEnroll brief description as a viable company to quote for group insurance. They reached out to me within a day and their professionalism impressed me. They clearly understood what I was looking for, asked relavant appropriate questions and then followed up with 3 quotes. Rates were very reasonable. My experience from start to finish with this company was excellent. Highly recommend contacting them for a quote.Tim IvanyshynTim Ivanyshyn ★★★★★ this company made it easy to choose the best plan for our company, no pushing and shovingHobo Camper Country ltdHobo Camper Country ltd ★★★★★ excellent service from George Solomonov, got me all enrolled and set up very efficiently and was very helpful when it came to me fully understanding the group benefits plans !Chantal SharronChantal Sharronjs_loader