The Importance of an RRSP for Alberta Businesses
Many companies in Alberta are doing well and things are looking up as the economy continues to flourish. This is creating a demand for more skilled workers and companies must attract and keep the right kind of employees if they wish to remain competitive. Offering more job benefits is no longer a luxury, but has become a necessary part of maintaining a business. This is the reason that benefits like RRSP plans are becoming more and more valuable. Here are some examples that illustrate the need for more employee benefits.
Company A is in direct competition with company B. Both organizations are short on manpower and advertising in the local newspaper is no longer an option. These companies need expert recruitment and both have professionals that work hard to recruit new talent. However, company B has chosen to offer additional benefits to make their company more attractive to job applicants. For example, they have given their people the option to join group insurance plans for car insurance and they are also offering a Registered Retirement Savings Plan. Is it no wonder that more people are going with company B for employment?
Here is another example. Company A has been losing valuable employees to several organizations. They know that they will have to offer registered savings plans to their people before long, as the laws in Canada are slowly changing. In fact, mandatory savings programs are already the law in Quebec. Instead of waiting until they must comply, company A decides to provide a Group RRSP program to their employees now. This is good for several reasons:
- Employees appreciate added benefits
- Workers feel like they are important to the company
- This is one less thing you won't have to worry about in the future.
- Keeps workers from looking elsewhere for jobs by increasing overall employee satisfaction
What is an RRSP?
A registered retirement savings program is a legal trust provided by the Canada Revenue Agency. Contributions are tax deferred until the funds are taken out of the account. The funds may be invested in mutual funds, bonds, stocks, mortgage equity, contracts, and GICs. This lets people have a retirement plan in addition to other plans they may have. These programs are exempt from dividend taxes, capital gains tax, as well as income tax.
Who Can Invest in a Registered Retirement Savings Plan?
Plans are available to Canada companies that have as few as 2 employees. However, large corporations can also invest. Programs are not limited to specific Canadian businesses. Just about any business with employees can take advantage of the benefits. In other words, you could be a manufacturing business, contractor, or services provider.
Are There Standard Group RRSP Plans?
Savings retirement plans are usually created to serve the business or organization. This depends on the size and the nature of the business, and a customised plan will be far more effective. Here are some common features you may find:
- Payroll deduction for easy contributions
- Company can match employee contributions
- Investment options - lets companies choose where the money is invested.
Are There Options for RRSP Programs in Edmonton Alberta?
Your company may wish to offer other types of retirement savings plans to employees. For example:
- Pension plans with defined contributions
- Special benefit plans
- Deferred profit sharing
- Non registered retirement savings programs
- TFSA (stands for tax free savings accounts)
- Voluntary retirement plans
- PRSP (pool registered savings plan)
Choosing the Right Financial Service
When you want the best possible registered retirement savings plan, choose a company that can help you from start to finish. Bridge Financial Insurance Ltd. will help you assess your current financial situation to determine the best kind of retirement savings plan for your organization. We will look at the present and future needs of your employees and help you choose the best plan, but this is only the first step. We are there to help you implement your plan and monitor how it is doing, to make sure your plan is performing as you expect. We can help companies with just a few employees or organizations with 500 employees.
When you decide to do business with Bridge Financial Insurance Ltd., you receive all the help you need. Administration is simple and can be done online.
Why Wait? Get Your Free Quote Today!
Before long, all Canadian companies will have to offer Group RRSP programs to their people. You can act now and this can greatly simplify the process. Bridge Financial Insurance Ltd. provides a choice of several programs, plus we are there with a retirement plan design consultant to help you create the perfect program. We offer multiple investment opportunities for your plans. In addition, we provide in house sessions for employees, for enrolment information, and to help better understand the plan. We also offer additional information resources online and at the office.
If you would like to know more about retirement savings plans, call Bridge Financial Insurance Ltd. today at 1-844-669-7284, or fill out the quote form on the right, and we will contact you.