Retirement Plans
The key advantage of a group RRSP is that it allows participants to benefit from exclusive perks that are difficult to obtain individually, such as preferential interest rates and reduced minimum deposit requirements.
Group RRSP
A group RRSP combines multiple individual RRSPs, providing centralized management of contributions, which are directly deducted from salaries. The employer, although the manager of the plan, is not required to make financial contributions to the group RRSP.
The key advantage of a group RRSP is that it allows participants to benefit from exclusive perks that are difficult to obtain individually, such as preferential interest rates and reduced minimum deposit requirements.
Benefits for the Employer
Flexible plan
The Group RRSP can be set up alone or in addition to a retirement plan.
Broad criteria
All Canadian residents under the age of 71 can participate, including shareholders, sole proprietors and partners, who may be subject to restrictions in other tax-advantaged plans.
Tax benefits
The employer’s indirect contributions and administrative fees are tax-deductible.
No mandatory contribution
The employer is not required to make contributions to the Group RRSP.
Benefits for the Employee
Practical and controlled savings
Immediate tax breaks
Contributions are deducted from gross salary before taxes, providing immediate tax savings.
Compound interest and immediate allocation
Regular deposits (bi-weekly or monthly) allow participants to immediately benefit from compound interest, leading to greater accumulation of wealth.
Investment risk allocation
Investing fixed amounts on a regular basis over a long period helps reduce risk by averaging out the cost of acquiring investments.
Collective buying power
Participants benefit from the strength of collective bargaining to secure better conditions
Income splitting
Spousal contributions are allowed, enabling members to benefit from a more beneficial tax rate, even after retirement.
Secure the future of your employees today!
At AHC Prestige, we are committed to helping you secure a worry-free future for you and your employees. Our group retirement plan experts are there to provide you with personalized solutions tailored to your organization’s individual needs.
Book an appointment now for a consultation with one of our advisors. Together, we will establish a clear and effective strategy to optimize your group pension plans, protect your employees’ financial security and guarantee peace of mind for everyone.