Did you know?

  • Just 27% of Canadians expect to be fully retired at the age of 66 (down from 51%in 2008).¹
  • 47% of Canadians aged 55-64 have never saved at all for retirement.²
  • Half of Canadians aged 50 and older believe they will run out of retirement savings within 10 years of leaving work.³
  • Less than 25% of private workforce have a pension.⁴

1 Ipsos Reid Poll, February 2013
2 “The Future of Retirement: A new reality”, HSBC, February 2013
3 Investor Education Fund, February 2013
4 “Registered Pension Plan (RPP) and Retirement Savings Coverage Canada, OSFI, December 2012


Retirement Savings is a big concern among many Canadians these days. There are some who cannot afford the time or money for retirement savings. Canadians rely on their employer to provide them with retirement savings plan; however, there are many employers who do not provide this for their employees.

As an employer, why should you provide your employees with a group retirement plan?

  • Your company becomes competitive among applicants and allows you to attract and retain valuable employees.
  • Retirement plans are tax-deductible and tax credits are available if your retirement plan qualifies.
  • A group retirement plan allows you, The Employer, to invest in your own retirement as well.
  • Also known as an ‘Employer-Sponsored Plan’, group retirement plans presents your employees with an automatic savings vehicle.

Group Registered Retirement Savings Plan

A Group Registered Retirement Savings Plan (GRRSP) is a retirement savings vehicle that allows plan members to defer income tax dollars. Earnings remain tax free until the employee retires and retirement income depends on the amount of money contributed and the investment options chosen by the member.

Who is eligible?

  • Usually, eligibility within a Group Registered Retirement Savings Plan is voluntary.

What are typical contributions to a GRRSP? Are there contribution limits?

  • Contributions can be made by the employees and/or employer.
  • Employees can contribute up to 18% of their previous years’ pensionable earnings to a maximum of $25,000.
  • Employees are advised to contact Canada Revenue Agency for their Notice of Assessment

Who is responsible for the investments?

  • Employees are able to choose any investments available within the plan.

Are there any withdrawal restrictions?

  • Any withdrawals from a GRRSP are considered as taxable income unless they are transferred to another registered plan.
  • Withholding taxes may also be applicable to any withdrawal.

Call us today for more information and learn how a Group Registered Retirement Savings Plan can be implemented into your company.

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