A Group Registered Retirement Savings Plan (RRSP) program is a collection of individual RRSPs administered by your employer. You make contributions to your individual RRSP directly from your paycheque.
Features and benefits
- Immediate tax savings through pre-tax payroll deductions
- Immediate vesting and plan portability
- Tax splitting opportunities with spousal RRSP plan
- Comprehensive selection of investment products and services, including socially responsible options
- Easy access to a qualified Servus financial advisor to help you build a personalized retirement plan
- No sales commissions to purchase OnCourse portfolios*
- Semi-annual or quarterly statements to keep you informed about investment performance
- Access to quality financial planning tools
The example below shows the benefits of making a group RRSP contribution through a payroll deduction versus making an individual contribution from your take-home pay.
|Group RRSP||Individual RRSP|
|Group RRSP contribution||$375||$0|
|Income tax deducted||$844||$944|
|Individual RRSP contribution||$0||$375|
With a Group RRSP, you have a monthly cash flow increase of $100 in this example.
The above chart is presented for illustrative purposes only. The information is based on federal and Alberta average tax rates for 2014. Consult a tax professional for complete details.
*Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the use of an asset allocation service. Please read the prospectus of the mutual funds in which investment may be made under the asset allocation service before investing. Unless otherwise stated, mutual funds and other securities are not insured nor guaranteed, their values change frequently and past performance may not be repeated. OnCourse Portfolios are made available to investors through ®Credential professionals located at certain credit unions in Canada.