An employer establishes a group retirement plan for its employees as a workplace advantage. Employers provide the plan because their contributions are tax-deductible, and it serves as a motivator for employees.
Employers frequently match a portion of employee contributions when they are invested in pre-selected investments offered under the plan. It’s a simple approach for employees to save for retirement or other goals. Offering a group retirement services and savings plan can be a cost-effective and efficient approach to attract, inspire, and retain employees while also assisting them in preparing for retirement. It isn’t only about your staff, though. When you offer a plan, your firm gains substantial advantages. Below are the advantages of a group retirement savings plan.
Benefits for your employees
Fees are reduced.
Because group fees are typically lower than retail, your employees will have more money in their pockets.
Convenience
Managing and monitoring an investment fund is easier for them than picking individual stocks and bonds.
Assist in the formation of lifetime habits
You may assist your employees in developing solid financial, health, and wellness habits that they can apply for the rest of their lives.
Improve financial wellness
Everything from employee morale to engagement is affected by financial stress. Shifting your benefits budget to provide employees with a secure retirement savings option will help them stay productive while reducing their financial anxiety.
Become a top employer
Build a culture of happy, productive employees with matching retirement savings plans to cement your reputation as an employer of choice.
Benefits for your business
Tax advantages
Administrative fees are deductible as a business expense for some products.
Reduce your payroll costs
Contributions to a deferred profit-sharing plan might minimize your payroll costs in some instances.
Plan administration simplified
While establishing a group retirement and savings plan entails some duties, we make the procedure as simple as possible to ensure that your plan is compliant.
Attract and retain talent
Recruiting, hiring, and retention activities are considerably aided by retirement benefits. Increase the value of your whole compensation package by including a strategy that assists your employees in improving their financial situation.
What’s the right plan for your company?
The registered retirement savings plan (RRSP)
This most popular retirement product, allows employees to make pre-tax salary contributions while also protecting their investment gains and contributions until they withdraw them – all while simplifying administration for you.
Tax-free savings account (TFSA)
Employees who have a tax-free savings account (TFSA) have a lot more flexibility in how they spend their money for short and long-term goals because there is no tax on investment earnings or withdrawals.
