Why join a group retirement savings plan?
Group savings plans are one of the best ways to save for your retirement. Registered plans, such as Group RRSPs and pension plans, enable you to save consistent amounts over a long period of time, a technique known as dollar-cost averaging. Along with the same tax advantages as a personal RRSP, group retirement plans offer the following benefits:
- Payroll deductions for immediate tax benefits
- Employer contributions enhance your personal contribution amounts
- Preferred management fees on pooled funds
- Online account access
- Friendly toll-free call centre
- Educational sessions
Contributions are tax deductible and instant
If you are contributing to a registered plan by payroll deductions, you can arrange with your employer to have the contributions invested on a before-tax basis; the contribution amount will be deducted from your gross pay before tax is calculated. This allows you to receive immediate tax relief, so you don’t have to wait until you file your tax return to receive a tax benefit. Payroll deduction also provides the benefits of dollar-cost-averaging.
Low minimum contribution
The sooner you start saving, and the more often you save, the better. Time works to your advantage, which is why we have low minimum contribution amounts. You should, of course, set goals and save as much as you can, but starting as soon as possible is the key! Paying yourself first through payroll deductions is an easy, painless way to save conveniently and quickly.
Professional investment management
The investment funds available through your plan are managed by experienced, professional investment managers. They understand and manage the bonds and stocks so you don’t have to. Some of these elite money managers are only available through a group plan arrangement.
Strength in numbers
Interest rates and investment management fees are based on the combined purchasing power of your group plan. You are ensured competitive rates that are almost always better than when you purchase them on your own. These benefits are passed directly to you and can have an impressive impact on your long-term growth.
You can name a beneficiary to receive your group plan assets in the event of your death. This provides for the assets to pass directly to your beneficiary, thus bypassing the probate process and fees that might otherwise apply.
Group plans may also offer creditor protection. This means that your group plan assets may be protected from anyone bringing a legal claim against you for money you owe. Owners, entrepreneurs, professionals or others who have concerns about the personal liability might welcome the creditor protection offered by a group plan contract.
Access at any time
You have 24-hour access to your group plan account through our secure Web services. After you enrol in the plan, you will receive a letter outlining how to use our Web services, and your password will be mailed separately. You’ll receive statements at least annually, depending on your plan, and you always have access to our customer contact centre.
Your rights and responsibilities
As a plan member, you have the right to access information about the nature and features of the plan.
You are also responsible for:
- learning about the plan
- making investment decisions
- using the available information and retirement planning tools