As an employer, you know that getting a group retirement plan can help your company solidify itself for the future. Not only will your contributions to the plan be tax-deductible, but it will keep your employees committed for the long-term, reducing the need for hiring new workers and ensuring productivity levels are maintained.
But what about the benefits of your employees? Alongside group health insurance plans, it is in your best interest to offer your employees a group retirement plan that helps them secure their future. Here’s why:
What is a Group Retirement Plan?
But firstly, let us explain what a group retirement plan is. In basic terms, it is a pension plan, much similar to RRSP, but is set-up by employers for the benefit of their employees. The policy is designed to provide employees with a plan to save for their retirement, as well as help them contribute more to it.
5 Ways a Retirement Plan Benefits Your Employees
1. Entice New Employees & Keeps Them Committed
Without question, a group retirement plan is an enticing prospect for would-be employees. It highlights a willingness on the company’s part to commit to the employee in the long-term, and in turn, the employee will stay knowing that their future is safe. Just like group health insurance plans, employees will feel valued by the company, showing loyalty in return.
2. Helps Employees With Their Retirement
Did you know that according to a new CIBC poll, 32% of Canadians between 45 and 64 have nothing saved for retirement? That is a staggering number, and while it is not a good outlook for employees and the economy in general, companies can alleviate that stress by providing group retirement plans. Employees will commit and feel comfortable with the knowledge that their future savings are being looked managed. The alleviated stress will also help employees focus on their jobs, helping increase their productivity.
3. Contributing To Their Savings
It has been known that a lot of people struggle to save. Whether it is because of overdue debt or household living costs, people struggle to put money away. The group retirement plan provides a helping hand. Contributions into the group retirement plans are directly withheld from the employee’s pay, thus making it much easier to save. Employees will find that they will be able to save money easier when it is done for them.
5. Employer Match Helps Produce More Savings
If an employer decides to make contributions to the group retirement plan, employees will accumulate funds quicker than ever. Employees will be able to continue working knowing that their future funds are given a helping hand by their employers. They will also feel happier that the company is committed to them in the long run.
As you can see, getting a group retirement plan can be beneficial for your business. Speak to a professional today and find the time to get your plan sorted.
Perlinger Group Benefits has been offering exceptional group benefit plans since 1992. Our goal is to provide the best group health insurance plans to meet your business’ needs, regardless of the size of your business. We make it affordable and easy to get access to comprehensive benefits plans. Contact us today: Direct Line 403-217-5560 | Toll-Free 1-877-217-7829 | Email [email protected].