According to Statistics Canada 2019/2020 data, the average tuition cost for Canadian undergraduate programs was $6,463. This number is estimated to go up to $6,610 in 2020/2021. Families struggle to make ends meet and experience challenging times to reach their retirement goals.
RESP(Registered Education Savings Plan) is one of the most powerful savings tools available to families hoping to avoid or minimize student debt. As an employer, you can show support to your employees by adding Canada Life’s new self-directed registered education savings plan (RESP) to your existing Canada Life group benefits or retirement and savings plan with no cost to your business.
“ As of November 1, 2020, Canada Life’s first fully digital employer-sponsored RESP started helping employees advance their long-term savings goals! ”
How Does Canada Life‘s Group Plan RESP Work?
The contributions are placed into a fund designed to lower the risk of a potential decrease in value as students get closer to starting post-secondary education.
In addition, contributions, potential investment growth and compound interest will grow tax-free until the beneficiary withdraws funds to register at a qualifying educational program.
When the time comes, filling up simple forms and a streamlined withdrawal process will release the funds to the beneficiary.
How Your Employees Will Benefit If You Decide to Add RESP to Your Existing Canada Life Group Benefits or Retirement Plan?
Many Canadians think an RESP is more complicated than coordinating after-school activities.
With Canada Life’s new self-directed registered education savings plan, your employees will;
- Gain access to traditional RESP advantages like applicable government education grants and tax-sheltered earnings on contributions including Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB),
- Benefit from Canada Life’s low investment fees,
- Have convenient payroll deduction, pre-authorized debit or online banking bill payment,
- Have the ease of fully digital experience,
- Have the flexibility to choose either the family or individual plan,
- Family and friends can also make direct contributions.
How to Add RESP to Your Existing Canada Life Group Benefits or Retirement plan?
The rest is simple; plan members need to sign up online, and they are all set!
When the time comes, it will be easy to withdraw the money for children’s education, and your employees will appreciate that you had the foresight to plan for their future.
This document is adapted from;
* Canada Life blog article “Canada Life’s new RESP employee benefit to help Canadians save for children’s post-secondary education” on October 15th, 2020.
** Canada Life’s email communication “Introducing registered education savings plans for group plan members” on September 14th, 2020.