Tax advantages of group RRSPs

For Canadians who have no company pension plans, a combination of the Canada Pension Plan (CPP), Old Age Security (OAS) and their personal savings must be relied upon to fund their retirement years.

Since CPP and OAS may only fund a fraction of retirement benefits, a large portion of a retiree’s income must come from personal savings.

Establishing an RRSP can support this component of a retirement plan and companies offering group RRSPs provide a convenient way to save for retirement.

A group RRSP is nothing more than a collection of individual RRSP accounts. Each employee establishes their own individual RRSP that can be contributed to by way of employee and/or employer contributions.