Group Retirement and Pensions
Group Retirement Savings Plans
A Group Retirement Savings Plan is a valuable way for businesses to help employees save for the future while strengthening their overall compensation package. These plans can help attract and retain employees, encourage long-term savings, and allow businesses to compete with larger employers that offer more established retirement benefits.
For incorporated businesses with 1 to 150+ employees, a group retirement plan can be designed to fit the size of the team, the company budget, and the goals of the business. Plans can be simple and low-cost to administer, while still giving employees access to professional investment options, automatic payroll contributions, and a more structured way to build retirement savings.
Group Retirement and Pensions
Group RRSPs
A Group RRSP is one of the most common retirement savings options for employers. It works similarly to an individual RRSP, but employees contribute through payroll deductions and can often access lower investment fees and a simplified investment platform.
Employers can choose whether to contribute to the plan and may offer matching contributions, such as matching a percentage of what employees contribute. This makes the plan more valuable to employees and can encourage stronger participation.
A Group RRSP may be a good fit if you want to:
- Help employees save for retirement
- Offer a flexible and easy-to-understand savings benefit
- Provide optional employer matching contributions
- Support employee retention and long-term loyalty
- Add value to your compensation package without creating a traditional pension plan
Group Retirement and Pensions
Deferred Profit Sharing Plans
A Deferred Profit Sharing Plan, often called a DPSP, allows an employer to contribute a portion of company profits to employees’ retirement savings. It is commonly used alongside a Group RRSP and can be a useful way to reward employees when the business performs well.
A DPSP can give the employer more control over contributions while still helping employees build retirement savings. It can also be structured with vesting rules, which may help support employee retention.
A DPSP may be a good fit if you want to:
- Share business success with employees
- Create a retirement savings benefit linked to company performance
- Encourage retention through plan design
- Pair employer contributions with a Group RRSP
- Offer a structured alternative to bonuses or informal profit sharing
Group Retirement and Pensions
TFSA Options
Some employers also add a Group TFSA as part of their retirement or savings program. A TFSA can give employees more flexibility because funds can be used for short-term or long-term goals, not just retirement.
A Group TFSA may be helpful for employees who have limited RRSP room, prefer more flexible access to their savings, or want another option alongside a Group RRSP or DPSP.
Group Retirement and Pensions
Why Employees Value Group Retirement Plans
Group retirement savings plans make it easier for employees to save consistently. Contributions can come directly from payroll, which helps employees build savings automatically without having to manage everything on their own.
Employees may also benefit from:
- Convenient payroll deductions
- Employer matching contributions
- Lower investment fees
- Online account access
- Diversified investment options
- A structured plan for long-term savings
- Support in choosing suitable investment options
Health / wellness spending account
Choosing the Right Plan
The right group retirement plan depends on your business goals, budget, and how much flexibility you want to offer. Some businesses start with a simple Group RRSP, while others combine a Group RRSP with a DPSP or TFSA option to create a more complete savings program.
We work with all the major providers and can help you compare options, understand how each plan works, and design a group retirement savings plan that fits your business and your employees.
Contact us to learn whether a group retirement plan is right for your business.