Group RRSP program
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 managed 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 | |
|---|---|---|
| Monthly salary | $4,167 | $4,167 |
| Group RRSP contribution | $417 | $0 |
| Taxable income | $3,750 | $4,167 |
| Income tax deducted | $938 | $1,053 |
| Take-home pay | $2,812 | $3,114 |
| Individual RRSP contribution | $0 | $417 |
| Take-home pay | $2,812 | $2,697 |
With a Group RRSP, you have a monthly cash flow increase of $115 in this example.
The above chart is presented for illustrative purposes only. The information is based on federal and Alberta average tax rates for 2019. Consult a tax professional for complete details.
*Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently and past performance may not be repeated.