In recent years, the shift away from government-provided pensions has made it increasingly important for individuals and organizations to take a proactive approach to retirement planning. Here’s a brief overview of the retirement savings programs and services you offer:
1. Group Registered Retirement Savings Plans (RRSP): RRSPs are a tax-advantaged way for employees to save for retirement. Contributions are deductible from taxable income, and investment growth is tax-sheltered until withdrawal.
2. Group Tax-Free Savings Accounts (TFSA): TFSAs are another tax-advantaged option for saving money. Contributions are made with after-tax dollars, and withdrawals which may comprise of growth in investment, are tax-free. They provide flexibility in how funds can be invested.
3. Deferred Profit Sharing Plans (DPSP): DPSPs allow employers to share profits with their employees. Contributions are made by the employer, and the plan typically has a vesting period before employees can access the funds.
4. Defined Contribution & Pension Plans: These plans involve regular contributions from both employers and employees. Contributions are invested, and the eventual retirement income depends on the performance of the investments.
5. Defined Benefit Plans: In contrast to defined contribution plans, defined benefit plans promise employees a specific benefit upon retirement. The employer bears the investment risk, ensuring a predetermined level of retirement income.
6. Individual Pension Plans (IPP): IPPs are designed for business owners and incorporated professionals. They provide a way to contribute more to retirement savings, and the contribution limits are higher compared to traditional RRSPs.
It’s important to note that offering a defined benefit Individual Pension Plan (IPP) to significant shareholders and business executives can be an attractive option due to its potential for higher contributions and retirement benefits. This can be a valuable incentive to retain key personnel.
