Puhl Employee Benefits offers advice on Group Savings Plans for employees in Calgary. We take a look at the Group Savings Plan Advantages….

Group Savings Plans include registered plans such as pension plans and Group RRSPs.

These are among the best ways to save for retirement as they allow you to save consistently over an extended period of time using an investment technique called as dollar-cost investing.

These plans offer the same tax advantages as that provided by a personal RRSP.

Group Savings Plan Advantages

#1: Any contributions made under group savings plans are instant and tax deductible. 

These plans offer instant tax relief. Here’s how.  One way to contribute to a group savings plan is by payroll deductions. You can make arrangements with your company to invest all of your contributions made to the plan on a before-tax basis, so that the amount contributed is deducted from your gross pay before the computation of the tax. You don’t need to wait until the tax returns are filed to get the tax benefits due to you.

#2:  These plans require a low minimum contribution.  

One of the biggest benefits of group savings plans is that they allow you to get started with a low minimum contribution. This allows you to start saving as early as possible, even when you’ve only got started in your career when you’re probably not earning much. The sooner you start contributing, the more you will save over time because of dollar-cost averaging. Paying yourself first through payroll deductions is the easiest way to save for retirement, one that wouldn’t cause you any heartburn.

#3: You will have a professional investment management service handling your funds. 

Your investment funds accumulated in the group savings plans are managed by a team of highly experienced investment managers. These are elite professionals who understand the stock market and the bond market very well and use their expertise to make you more money. They sweat the details so that you don’t have to.

#4: Benefit from the combined purchasing power of your group. 

When you hold a group savings plan you can negotiate as a part of a large group of employees for better interest rates and lower management fees. There is strength in numbers, as they say.  You will be able to get more benefits as a part of a group than what you could have obtained as an individual.

#5: Your beneficiaries won’t have to worry about the probate process. 

You can nominate a beneficiary to receive the assets from your plan in case of your death. The assets are directly passed to your beneficiaries, without involving the probate process and the fees associated with it.

 Your Next Step

Puhl Employee Benefits offers top-rated financial advice on employee benefits and insurance in Calgary. We have a team of highly experienced and certified advisors working for us and know all major insurance and fund companies based in Canada. You will get all the help and advice you need for your Group Savings Plan.

If you have any questions or concerns, all you need to do is to pick up the phone and call us on this Toll Free number: 1(888) 508-0077 or fill up this contact form. Our representatives will get back to you as soon as possible. You could also walk into our office at 209, 2577 Bridlecrest Way SW, Calgary, Alberta.