Retirement might seem far off, but the earlier your team starts saving, the easier it is to set them up for a secure financial future. That’s exactly where group retirement savings (GRS) plans come in.
Offered by many Canadian employers, these plans take the hassle out of saving. Contributions are deducted directly from employees’ paychecks, making it a simple and automatic process. Better yet, in many cases, you’ll match a portion of what they put in, which adds up fast.
While similar to an individual RRSP (registered retirement savings plan), a group RRSP is managed by a financial institution, not by you directly. It still offers all the same tax perks, plus extra convenience and often extra value.
Employer contributions usually land somewhere between 3% and 6% of an employee’s salary. The money stays with them even if they change jobs, and it keeps growing tax-free until they pull it out.
Plus, the funds can be borrowed under the Home Buyers’ Plan or Lifelong Learning Plan. Then at age 72, they’ll need to convert their savings into retirement income, such as an RRIF or an annuity, where it gets taxed as it’s paid out.
In short, a group RRSP helps your team save without having to think about it. With your help, they’ll save faster, with less stress, and be better off when they finally clock out for good.
Why Group Retirement Plans Are Essential
Group retirement programs are doing more than just helping people save. They’re directly reducing financial stress, which is closely linked to both physical and mental health. This kind of long-term support creates a more engaged, stable, and healthier workforce, benefiting everyone involved.
1. Automatic and consistent savings
Saving regularly is tough for most people. Group RRSPs take the pressure off. Contributions come right out of each paycheque automatically, so saving becomes second nature.
Those steady contributions might feel small, but over time, they snowball into something significant. With rising living costs, helping your employees plan ahead is more important than ever.
2. Employer contributions add more value
Matching contributions, typically ranging from 3% to 6%, are a significant incentive. That’s real money going directly into their retirement accounts, and over the years, those extra dollars can grow into a sizeable nest egg.
Even modest matches can turn into tens of thousands in extra savings. It’s a perk your team will notice and value.
3. Tax benefits that work for employees
Group RRSPs work just like individual RRSPs when it comes to taxes. Contributions are deducted from taxable income, which lowers what your team owes the CRA. Plus, investments grow tax-free until withdrawal.
It’s a win-win: less tax today, more wealth tomorrow. Add in your matching contributions, and it’s one of the smartest, most tax-efficient ways for your employees to save.
4. Supporting employee well-being and health outcomes
Money stress doesn’t stop at the bank account. It’s tied to mental health, daily stress, and even whether people get the healthcare they need. Some folks skip meds or put off care because they just can’t afford it.
But when people feel more financially secure, like knowing they’re on track for retirement, the benefits ripple out. They sleep better. They’re less stressed. They even rate their health more positively. In fact, 65% of Canadians say they’re stressed about money, and nearly 27% report that this stress affects their productivity at work.
A recent Ontario survey showed that over half of employees believe retirement planning should include mental and physical health, not just dollars and cents. Group RRSPs play a big role in that.
How Implementing a Group RRSP Plan Can Benefit Your Company
Adding a group RRSP to your employee benefits doesn’t just help your team; it gives your business a leg up, too.
Recruiting High-Calibre Talent
Top candidates look beyond the salary. They want to know what’s in it for them down the road. A solid group RRSP can be a deciding factor when they’re weighing offers.
It sends a clear message: your company cares about the long game. That kind of thinking attracts driven, forward-thinking professionals who want more than just a paycheque.
Building Retention and Loyalty
It’s one thing to hire great people. It’s another to keep them. A group RRSP shows your employees you’re invested in their future, and that builds loyalty.
When people feel appreciated and supported, they stick around. That means less turnover, fewer hiring headaches, and real savings on recruitment and training.
Helping Financial Health and Productivity
Money problems are a major distraction. They follow people to work, eating away at motivation and productivity. Group RRSPs ease some of that pressure by giving your team a plan. By addressing one of the leading sources of employee stress (long-term financial insecurity), group RRSPs can make a real difference in how your team shows up day-to-day.
When your employees aren’t worrying about their finances, they’re free to do their best work. They’re more productive, more engaged, and more present.
Demonstrating Corporate Responsibility
Modern workforces want to know their employer has their back. A group RRSP is more than just a benefit; it’s proof you care about the people behind the roles.
That kind of investment pays off. Internally, it boosts morale. Externally, it enhances your company’s image. People want to work for, and with, businesses that take responsibility seriously.
Offering flexible investment options and contribution models can also help meet the needs of a diverse workforce, ensuring everyone benefits from the program. This could mean providing both conservative and growth-focused funds, or offering tools that help employees choose the best investment based on their goals and risk tolerance.
You can also give staff the option to adjust their contributions throughout the year or after a raise, which makes the plan feel more personal and responsive. The more control and clarity employees have, the more likely they are to engage fully with the program.
Contact Benefluent Advisory to Implement Industry Best Group Retirement Savings Solutions
Want to help your employees build a better future and position your company as a standout employer? Offering group RRSP plans is a great place to start, and Benefluent Advisory can help you make it happen.
We’ve got the experience and know-how to guide you through it. We’re not tied to any one provider, so we can help you find a flexible plan that works for your business and your team.
Whether you’re looking at RRSPs, DPSP combos, pension plans, or TFSAs, we’ll set you up with a solution that makes sense. Let’s make sure your benefits reflect how much you value your people.
Call Benefluent Advisory at 1 (888) 984-6070 or reach out here to get started.
