The Canada Pension Plan (CPP) is designed to replace approximately 25% of employees employment income when they retire. But the average CPP payment is less that $600 per month. In order to retire comfortably, employees need to use other savings vehicles to fill this large gap in retirement income. Unfortunately, most Canadians are not saving enough on their own to fund their retirement.
The Canadian government passed the Pooled Registered Pension Plans (PRPP) Act in 2012, formally recognizing that greater access to workplace savings programs is needed to help Canadians adequately save for retirement. Other provinces are currently implementing Voluntary Retirement Savings Plan (VRSP) to comply with new provincial VRSP legislation.
Ontario has not legislated a formal program to date, but an Ontario Pension Plan has been proposed along with discussion of PRPP and VRSP. As an employer in Ontario, there are many savings plan options available to make it easy for your employees to save for retirement. We can provide the information you need to help determine what plan is right for you and your team. We offer retirement savings plans, profit sharing, and pension plans.
Offering a Savings Plan to your employees will show that you care about their financial future.
Your employees will benefit significantly from their plan membership with:
- Reduced taxable income by having contributions deducted at source
- Lower investment management fees than they would pay in retail investment funds
- Access to leading Investment fund managers with no minimum investment requirements
These benefits will allow them to build greater retirement income for the future.
At your Service
At Heidi Blondin Financial, we will make administering your Group Savings Plan simple. We will also provide access to one-on-one financial advise for each of your employees. This will truly show your employees that you value their services and care about their financial future.
Contact Heidi today to find a plan that is right for your team.
Group Benefit Plans are also available to compliment your group retirement savings plan offering.