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A Retirement Savings Plan improves employee attraction and retention.

6/10/2022 | Employee Benefits

Providing a Retirement Savings Plan such as an RRSP or Deferred Profit Sharing Plan improves employee attraction and retention.

According to a 2022 survey by Maru Group Ltd. on behalf of the Healthcare of Ontario Pension Plan, 66% of Canadians would rather have a lower salary and a pension than a higher salary with no pension.  While older Canadians who are closer to retirement are, predictably, more likely to take the pension over the salary, half of young workers under 35 still choose the pension over salary.  

A competitive Total Rewards offering is more important than ever in today’s employment market. We hear every day about businesses that are struggling to hire qualified candidates — positions are going unfilled and strong candidates are being counter-offered by their employers to stay. The hiring process is expensive but even more so is the loss of a valued employee. Employee Retirement Benefits are being used by employers as a top attraction and retention tool.

Consider the impact of a Retirement Savings Plan for your employees:


  • Most Canadians worry about their retirement savings and struggle to save. An employer that delivers on these two concerns lowers the collective stress of its workforce.
  • Employers rest with the knowledge that long-term employees can retire well and at a healthier age.


  • A retirement plan is quickly becoming a base-requirement for most prospective employees
  • Companies with RSPs have higher employee retention – especially properly designed plans with increments based on years-of-service.


  • Can cost as little as adding 2% to your payroll
  • Attracts less payroll taxes than other forms of compensation
  • By building in vesting rules, you lower the cost of turnover and increase the incentive for employees to stay.

For the employee, the ability to save income-tax at source lessens the impact of retirement contributions on cash-flow.

**When sourcing a provider, a cost-savings can be achieved by combining it with your group insurance program 


  • Low management fees lead to higher savings growth. Group savings plans offer employees much lower investment management fees than they can obtain on their own.

Access to professional management and easy-to-use portfolio construction tools, lead to better long-term outcomes

  • Employer matching automatically boosts the rate of return on employee contributions.

READ: Majority of Canadian workers willing to take less pay for a workplace pension plan

We believe that everyone, after working for the majority of their adult life, can achieve a comfortable retirement.  Employees will reward an employer that helps them get there.  If you are interested in reviewing your Total Rewards program or implementing an Employee Retirement Savings Plan, we’ll work with you to understand your needs, provide industry benchmarks and design a solution that is tailored for you and your business. Contact us to get started! 

Already have an RRSP matching program in place? Are you compliant with the Capital Accumulation Plan (CAP) Guidelines? Do you have engaged and educated employees through the use of intuitive technology and regular learning sessions? Connect with us to learn more!


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