Are you considering a registered retirement savings plan (RRSP) at your small business in Windsor or Essex County Ontario?
Offering employees a group RRSP is a cost-effective way to expand your benefits package dramatically. Employers and employees alike benefit when companies take a forward-looking approach to retirement. In addition to providing for long-term contributors in their old age, an RRSP program can help improve team morale and bottom-line financial performance in the here-and-now.
Is a group RRSP right for your enterprise? Ask yourself these questions:
“Do I Need to Attract or Retain Better Talent?”
According to a recent study by the Canadian Payroll Association, cash contribution to a group RRSP program ranks tenth in the top ten list of benefits at Canadian companies. That means employees have come to expect things like health and dental insurance or term life insurance, but an RRSP can truly differentiate your business and position you to recruit top-tier talent.
“Would I Prefer an Efficient, Easy-to-Administer Retirement Plan?”
A group RRSP tends to be much easier for a small business to launch and maintain than a traditional pension plan. Large enterprises that have plenty of disposable cash to devote to administrative overhead, an in-house benefits team, and strict compliance standards might consider a conventional registered pension. Businesses that need to focus on staying nimble should look at a group RRSP first.
“Do I Need a More Positive Tax Posture This Fiscal Year?”
At first, the costs associated with any retirement-related benefits plan might look daunting. The picture changes significantly when you remember contributions your firm makes into RRSP funds on behalf of your employees are fully tax-deductible. Employees also benefit: All their contributions are also tax-deductible and sheltered as long as the funds remain in the plan.
“Do I Want a Retirement Scheme That Adapts to My Business Needs?”
When you elect to adopt an RRSP, you get to establish a contribution formula that works for you – deciding how much you and your employees invest in every pay period. This lets you structure the program according to your business performance and expected growth. In the future, you can even choose to increase or decrease your firm’s contributions to RRSP funds.
Is a group RRSP right for you? If you’ve answered “yes” to two or more questions above, it’s worth taking a closer look. To find out more, talk to advisor Ned Colovic today!