How RRSP perks can be a game-changer for your employees today

While news of COVID-19 vaccines has revived optimism in some people, many are still wary of what the future holds. This is particularly true when it comes to making investments and planning for retirement.

According to a new survey by Scotiabank, 70% of Canadians are unsure about what to do with their investments in this current environment. The survey also found that many Canadians are starting to rethink their retirement plans altogether. 

In fact, 72% of respondents feel that they are not saving enough right now for their retirement and 32% believe they won’t be able to retire when they had planned because of setbacks attributed to this pandemic. Another 28% of respondents say they won’t be able to eliminate their debts before retirement. 

So what does this mean for forward-thinking employers? RRSP contributions can be a welcomed perk for existing employees and a key differentiator in your benefits offering to boost your current recruitment efforts

7 reasons employees appreciate Group RRSP plans

Helping your employees through this pandemic can include many options. For instance, perks like telehealth services and mental wellness programs rank among the top employee benefits for 2021

With so many worrying about their financial future, topping up your employee benefits plan with Group RRSPs can also be hugely beneficial. Here are a few other reasons why your current and prospective talent will love a Group RRSP offering:

  1. Automatic deductions – RRSP contributions are made through automatic payroll deductions, offering a simple and convenient way for employees to save for retirement. 
  2. Matched contributions – Employers usually match employee contributions anywhere between 1-5%, giving each employee a boost in their retirement savings goals. 
  3. Reduced income tax – A certain amount of retirement savings plan contributions can be tax-deductible which helps employees reduce personal income taxes. 
  4. Lower fees – A group retirement plan is consolidated between many employees. This means employees pay less investment management fees in comparison to individual plans.
  5. Personalized choices – Employees have the freedom to decide how much they’d like to contribute. Based on their preferred risk levels, they can also choose from many different investment options.  
  6. Participation flexibility – There’s no pressure to participate in Group RRSP plans. Employees can decide to opt out or build their own portfolios if they want more control over their investments. 
  7. Financial guidance – Group RRSP plans usually include support resources, helping employees reach their retirement goals faster.

Boosting financial security through Group RRSPs

There is still a lot of uncertainty looming at this point in the pandemic. One way to ease your employee’s concerns is to help them stay on track with their financial and retirement goals. If you’re interested in setting up a group retirement savings plan or want to explore other perks that can enhance your team’s sense of financial security, our BenefitDeck team is available to help. Feel free to send us an email at info@benefitdeck.com so we can arrange a time to chat. 

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