Individual RRSP
Opened by individual clients, this type of account will be registered under their name. They’ll also get full control of their investments. A Canada Life health and wealth consultant is available to help plan holders choose investments that fit their retirement goals and risk tolerance.
Group RRSP
This serves as a savings and investment program set up by employers to help employees save for retirement. Employees can also get immediate tax benefits as the contributions are made before income taxes.
“Canada Life’s group registered retirement savings plans (RRSP) are made available through employers and plan sponsors,” explained Kate Nazar, vice-president of group retirement services at Canada Life. “They can be an important part of a plan member’s overall compensation package and a valuable boost to the member’s future retirement income.”
Group RRSPs work like individual RRSPs. The main difference is, Nazar added, group RRSPs can be tailored to fit the needs of each workplace. Through a group plan:
- employees can contribute directly through payroll deductions
- employers may choose to match a percentage of employee contributions
Spousal RRSP
This allows married couples, with one partner earning considerably more than the other, a way to balance their retirement savings. A spousal RRSP provides an income-splitting benefit for couples where the contributing spouse receives the tax deduction. This is while the account is registered under their partner’s name.
