Group RRSP

Small businesses are rarely able to compete with larger companies when it comes to employee benefits. When it comes to assisting employees with their retirement savings plans, registered pension plans are out of the question for small employee groups. However, one benefit that the small business owner can employ easily is a Group RRSP. Having such a plan will give employees the satisfaction that they have an opportunity to look after their future which is an area of increasing employee concern.

Setting up a Group RRSP is simple. As a small business owner you are essentially providing a free employee benefit for your employees. The employees will benefit from a fixed payroll savings plan for their retirement. As well, as opposed to waiting until they file their tax return to benefit from tax refunds as they do on their personal RRSP contributions, they realize the tax benefit immediately as tax is not withheld on their payroll contributions.

Often, employers will offer a Company matching program to improve the employee benefit and further entice the employee to save. For example, a Company may match employee contributions up to 3% of the employee’s base salary. This makes the benefit exceedingly attractive.

In summary, a Group RRSP rates high in terms of benefits that employee’s are looking for. We recommend them to our small business clients regularly. Transitions Wealth Strategies is authorized to set up your Group RRSP and look after the administrative enrolment and employee education details.

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