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Group Retirement

Group retirement plans, also known as group Registered Retirement Savings Plans (RRSPs), are retirement savings plans that are sponsored by an employer. They are designed to help employees save for retirement by allowing them to contribute a portion of their income to the plan on a regular basis. Employers may also choose to contribute to the plan on behalf of their employees.

Group retirement plans can have a positive impact on RRSPs in Canada by making it easier for employees to save for retirement. By automatically deducting contributions from employees’ paychecks and offering the plan through their employer, employees may be more likely to participate in a retirement savings plan and save more for retirement. Employers can also offer to match employee contributions which can encourage employees to save more.

It is important to note that group retirement plans have different rules and regulations compared to individual RRSPs. For example, group RRSPs may have different contribution limits, withdrawal rules and penalties. Additionally, employees may not have the same level of control over their investments as they would with an individual RRSP.

It’s recommended that employees should consult with their employer, a financial advisor or tax professional to understand the specific rules and regulations of their group RRSP and how it can work together with their individual RRSP.