Group RRSPs (GRRSP) can be offered by organizations to employees as part of a competitive compensation package to aid employees with financial savings. Saving for retirement is a process that many employees put off, yet the earlier a person begins to save, the more retirement income those savings can produce. Offering a GRRSP means setting a corporate philosophy to help employees save which can help attract and maintain quality talent as employees are less likely to leave a company when they have access to a strong benefit and savings program.
GRRSPs can be set up in two ways:
- Stand-alone savings vehicle for voluntary deposits
- Set deposits, such as a percentage of an employee’s income
Organizations can also match an employee’s deposits up to a specified maximum.