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Retirement planning is a crucial aspect of financial planning, and it’s never too early to start thinking about it. One of the best ways to save for retirement is through group retirement plans, which are offered by many Canadian employers.
These retirement plans are designed to help you save for your retirement years in a more efficient and cost-effective way than traditional retirement savings options.
At Open Access, we have been helping small to medium-sized businesses in Canada achieve their financial goals through group retirement plans for over 25 years. In this blog, we’ll explain what a group retirement plan is and the various customized plans that we provide for our members.
What is a group retirement plan?
A group retirement plan is a retirement savings plan that is offered by an employer to its employees. These group retirement plans allow employees to make regular contributions from their pre-tax income. One of the key advantages of a group retirement plan is that it has lower fees than traditional individual retirement savings plans due to the economies of scale.
Types of group retirement plans
At Open Access, we offer a range of group retirement plans that are fully customizable to meet the unique needs and requirements of each organization. Here are the most popular types of group retirement plans we provide:
Defined Contribution Pension Plan (DCPP)
A Defined Contribution Pension Plan (DCPP) is a type of retirement plan where the amount of payout received by the plan member is not predetermined. Instead, the payout is determined based on the total assets that the plan member has accumulated by the time they retire. This means that the amount of retirement benefits received by the plan member will depend on factors such as the amount contributed to the plan, investment returns, and the duration of the plan.
Group Retirement Savings Plan (GRSP)
A Group Retirement Savings Plan (GRSP) is a type of retirement savings plan that is typically offered by employers to their employees. Similar to individual Registered Retirement Savings Plans (RRSPs), GRSPs offer employees the flexibility to save for retirement in a tax-advantaged manner. One benefit of GRSPs is that tax-free withdrawals are permitted under certain circumstances, such as the Home Buyers’ Plan and Lifelong Learning Plan.
Deferred Profit Sharing Plan (DPSP)
A Deferred Profit Sharing Plan (DPSP) is a type of retirement savings plan that allows companies to share their profits with their employees. Under this plan, a portion of a company’s profits is set aside and distributed to employees at a later date, typically upon retirement or termination of employment. A DPSP is often used as a substitute or supplement to a Group Retirement Savings Plan (GRSP).
Group Tax Free Savings Account (GTFSA)
A Group Tax-Free Savings Account (GTFSA) is a popular savings plan that employers can offer to their employees. This type of savings plan allows employees to save and invest their money in a tax-free manner, with no taxes owed on the income or capital gains earned within the account.
Customizable plans for your organization
At Open Access, we understand that every organization has different needs and requirements when it comes to group retirement plans. That’s why we offer fully customizable plans that can be tailored to meet the unique needs of your organization.
Whether you’re looking to implement a DCPP, GRSP, DPSP, or GTFSA, we can work with you to set up a plan that is right for your employees. Our team of retirement planning experts is dedicated to providing you with the support and guidance you need to ensure a seamless and efficient implementation process.
If you’re looking for a Canadian group retirement plan provider, look no further than Open Access. Contact us today to learn more about the group retirement plans we offer. We’re committed to helping your organization succeed, both now and in the future.
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