SOLUTIONS FOR BUSINESS
77% of Canadians would consider changing jobs for better retirement support
There are many reasons why every organization should have a group retirement plan, here are just a few:
Increased Productivity
Plan sponsors (employers) can anticipate reduced absenteeism, as members (employees) spend less company
time attending to their personal financial matters.
Source: Benefits & Pensions Monitor
Reduced Turnover
Having a group plan in place helps attract and retain qualified individuals. 45% of respondents say their
company’s retirement plan is an important reason for them to stay with their current employer.
Source: Tower Watson 2013/2014 Global Benefits Attitudes Survey
Increased Morale, Work Satisfaction and Loyalty
According to a recent study, 77% of working Canadians would consider changing jobs if, all other things being
equal, another employer offered better retirement support.
Source: Research by ADP Canada, 2016
GROUP RETIREMENT PLANS
Features of a Group RRSP:
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Plan sponsor contributions to a Group RRSP are a taxable benefit to members.
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Taxable income is increased but off-set by a tax receipt. However, payroll taxes are also increased and can impact both plan sponsor and member.
Additional features of a Group RRSP:
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Vests immediately
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Partial / full withdrawals allowed
DEFERRED PROFIT SHARING PLANS
Features of a DPSP:
Unlike a Group RRSP, a plan sponsor contribution to a DPSP is not a taxable benefit to members. Therefore, it does not increase payroll taxes.
Payroll taxes include: CPP; Employer Health Tax; EI; Worker’s Compensation. Contributions must be made from profits and/or retained earnings.
Additional features of a DPSP:
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Up to two year vesting period
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Withdrawals can be restricted
COMBINATION GROUP RRSP / DPSP
Combination Group RRSP / DPSP:
With a Group RRSP for member contributions and a DPSP for plan sponsor contributions, everyone wins. Members contribute to a Group RRSP, affording them the flexibility they need to manage their retirement plan. Plan sponsor contributes to a DPSP, reducing their payroll taxes and enhancing restrictive features if desired.
Positive impact of Group RRSP / DPSP:
Plan sponsor
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Up to two year vesting period
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No partial / full withdrawals unless authorized
Supplemental plans:
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Group TFSA
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Group RESP
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Group Non- Registered • IPPs
Member
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No negative tax impact
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Not locked-in
WHY COLWOOD SHORES FINANCIAL?
UNPARALLELED SUPPORT
Advice
Financial Advisors are Qualified Professionals:
A qualified financial advisor ensures that all participating members – especially those with little or no investment experience – receive suitable and prudent guidance when investing their savings.
A financial advisor will also conduct a periodic review of the investment mix and co-ordinate other registered and non-registered long-term savings at your request. By law, investment advice is to be dispensed only by individuals registered with the provincial securities commissions.
Communication
Keeping Members Informed:
More than simply providing investment advice, your financial advisor is available to answer questions about your members’ personal investments, account statements and any financial matter that concerns them through in-person meetings, group sessions, or even online through zoom.
Because the financial advisor is familiar with the members’ personal situations, they can present a variety of options to help meet their individual objectives.
Your advisor will keep you up to date on important changes to the group plan’s investments, various regulatory changes that could impact the plan and much more.
Education
Educated Investors Make Great Clients!
In addition to counselling individual investors, a financial advisor is a valuable resource to help educate plan sponsors on the various group plan options available and the benefits associated with each.
For investors, financial advisors provide education on a wide range of investment topics for both the novice and more sophisticated investors.
Many financial advisors will tell you that the more educated an investor is about their investment selection, the more comfortable they are over the long term.
Like what you hear and want to learn more?
Contact us today to find out what we can do for your business!
