Why Business Owners Should Add a Group RRSP to Their Coverage: A Smart Move in Today’s Economic Climate

In today’s ever-shifting financial landscape, Canadians are feeling the pressure to save more than ever. Rising inflation, the cost of living, and uncertainty around the future of government retirement benefits have left many employees looking for smarter ways to grow their savings. For business owners, this presents both a challenge and an opportunity, to support their employees’ financial well-being while strengthening their overall benefits offering. One highly effective solution? Adding a Group Registered Retirement Savings Plan (Group RRSP) to their current coverage.

What is a Group RRSP?

A Group RRSP is an employer-sponsored retirement savings plan that allows employees to make regular contributions directly from their pay cheques. These contributions are made before tax, which helps lower employees’ taxable income and encourages disciplined, consistent saving. Employers also have the option to match a portion of contributions, amplifying the long-term value of the plan.

Key Benefits of Adding a Group RRSP

1. Boosts Employee Retention and Recruitment With more Canadians prioritizing financial stability, a Group RRSP can be a key differentiator in a competitive job market. It shows employees that the company is invested in their long-term success, not just their current performance.

2. Tax Advantages for Employers and Employees Employer contributions are a deductible business expense, which can help reduce the company’s overall tax burden. Employees benefit from immediate tax deferral on contributions and tax-sheltered growth within the plan.

3. Easy to Implement and Cost-Effective Compared to pension plans, Group RRSPs are relatively simple to set up and administer. They offer flexibility in terms of contribution amounts and do not come with the same regulatory requirements, making them an ideal choice for small to medium-sized businesses.

4. Encourages Financial Wellness Financial stress is one of the leading causes of decreased productivity and absenteeism. Helping employees save for the future through payroll deductions builds financial confidence and encourages a savings habit that can last a lifetime.

Why Work with Toronto Life Financial Group?

Adding a Group RRSP is just the start. When you partner with Toronto Life Financial Group (TLFG), you unlock additional value that makes your plan even more powerful—for both your business and your team.

• Centralized Management Employees can manage all their investments in one place for better oversight and simplicity, including the ability to track and adjust their Group RRSPs, RESPs, and more.

  
  

• Greater Fund Selection TLFG offers access to a broader range of investment options compared to typical standalone accounts—giving employees more control and flexibility based on their goals and risk tolerance.

  
  

• Co-mingling of Accounts Participants can combine Group RRSP and individual RESP contributions, streamlining the management of their family’s financial future.

  
  

• Advisor Support With TLFG, your employees have access to licensed financial advisors who can help with retirement planning, investment choices, and more—providing clarity and confidence in their financial decisions.

  
  

• Stronger Financial Outcomes When employees are supported and educated, they contribute more consistently. The result? Improved savings, long-term financial growth, and a stronger foundation for retirement.

Adding a Group RRSP to your business’s existing benefits package isn’t just a nice-to-have—it’s a powerful way to invest in your team and your business at the same time. In an era where financial security is top of mind, this small addition could make a lasting difference.

When you partner with Toronto Life Financial Group, you’re not just setting up a savings plan—you’re creating a culture of financial empowerment, productivity, and long-term loyalty.