Help employees save for the future with a Group Savings Plan. A valuable complement to a group life and health insurance program is a Group Savings plan. A Group Savings Plan helps you to attract, keep and reward the great people that make up your organization.
At the Immix Group, our goal is to ensure that employers and employees receive proper education when it comes to their Groups Savings Plan, and that the implementation and management of your program is simple and easy.
Group Savings Plans don't have to be complicated.
Request your free guide to Group Savings Plans today.
A Registered Retirement Savings Plan (RRSP) is a personal savings plan that is registered with the Canadian federal government allowing, individuals to save for the future on a tax-sheltered basis.
The purpose of an RRSP is twofold; to reduce income taxes each year, and to defer tax on investment income until retirement, when ones tax rate is expected to be reduced.
A Group RRSP is simply a RRSP set up through an employer, offering contributions by payroll deduction.
A DPSP is an employer- sponsored registered plan and is often established in conjunction with a Group RRSP, to hold the Employer contribution portion. A DPSP offers:
The purpose of a DPSP is to share profits with employees; contributions can be calculated based on profits, a percentage of employee salaries or another formula.
A Registered Pension Plan is subject to stricter regulations than other group savings programs.
There are two main categories of pension plans:
Deferred Profit Sharing Plan:
A Tax-Free Savings Account (TFSA) is an account that accrues tax-free savings.
While a TFSA does not provide the same tax advantages as a RRSP, employees can benefit through a consistent and systematic savings plan, and access to lower investment fees.
Set yourself apart as an employer:
Offer your people the opportunity to save for their futures!
Despite the process being simple and easy, most employers are not providing their teams with the opportunity to join an employer-sponsored group savings program such as a group RRSP, TFSA or DPSP. These employers aren’t taking advantage of this very simple, very meaningful way to help reward employees and cement their loyalty. Implementing a plan makes your company stand out—in a good way.
If you’ve already implemented a comprehensive health benefits program, and you’re paying competitive salaries within your industry and for your location, the next step is implementing a group savings program.
Generally speaking, other than a very small amount of administration time, the only cost to you as the employer is whatever you decide to contribute to your employees. If it’s just not in the budget, you can still set up a plan that is for voluntary employee contributions only.
Saving money is hard, and it’s stressful. Show your employees that you care about them and their future. Help them to save for their goals, whether it’s for a down payment or for retirement. Just as with employee health insurance plans, your team will truly appreciate a group savings program. These plans are highly valued, far beyond the dollar equivalent in a salary raise.