Whether you are just starting your career, are in your prime earning years, or are approaching retirement, saving money for your future should have a firm place on your financial priority list. The cost of living is rising and this should may inspire you to save money for your future.

WELL STRUCTURED RETIREMENT PLANS

Why We Should talk About Them

The decision to explore the available options for a group retirement plan for staff members is a positive and forward thinking one. Therefore, many employers in the Canadian public and private sectors offer group retirement plans. These serve as attractive employee benefits which play a valuable role in the total compensation package.

Every day businesses are competing with each other for not only market share, but also for attracting talent. Building and maintaining a talented team can be a challenge. While employers want to attract and retain employees, employees want to work somewhere they can learn, be recognized and feel like they are part of the company culture. There may be little surprise that your employer is offering a retirement plan to invest in your future role in the company.

ADP Canada`s study supports this statement. The data shows that 77% of working Canadians would consider changing jobs if, all other things being equal, and another employer offered better retirement support. Employers must understand employees` priorities, because 7 out of 10 employees are at risk of leaving a company for this reason, it is a conversation worth having. It is prudent for CEO`s and HR managers to ask themselves why the percentage is so high.

7 out of 10 of working Canadians consider changing jobs if other employers offer better
retirement support

Employers can show their appreciation in wide variety of ways. For employees, a competitive retirement plan is one of the most appreciated ways of saying “Thank you & You are Valuable”.

In Canada, workers under the age of 45 with middling incomes (families earning about $50,000 to $80,000 a year) are at high risk of falling into a low-income range after retirement. Without a retirement plan it is expected that many people may hit retirement with little in personal savings. Under these negative pretenses, being rewarded for your hard work with a retirement plan is considered as one of the most desirable aspect of a prospective job.

A well-structured retirement plan is one that adopts a realistic course of action while providing financial growth opportunities to its members. They can bring competitive returns over the long run, and ensure that employees can have a sustainable retirement income. In addition, being part of the company retirement plan allows employees to enjoy the discounted management fees from retail prices available through individual plan with banks and other institutions. This gives employees more flexibility with contributions because of the increased bargaining power of your group.

A majority of private Canadian companies are hesitant to offer retirement plans. They don’t think they have time to find the right plan, as providing assistance to employees with viable investment and education tools can be challenging and time consuming.

Legislative changes and management fees can impact the effectiveness of the retirement plan. In these situations, transferring the administration and the control of retirement plan to qualified brokers makes a lot of sense because;

• The retirement plan can be designed adequately to meet the needs of you and company.
• Competitive provider’s quotes can be presented, and comparative analysis can reveal important details of the plan so the decision can ensure the best possible retirement plan for your organization. The research, plan provider review and design processes are crucial steps to have wellstructured retirement plan. However, they can be time consuming and complicated. With help from financial advisors, organizations can save time and costs.
• Legislative changes are mostly technical in nature, and the plan may need to be compliant with regulatory changes. Financial advisors can make sure the plan is administered with updated changes to stay compliant and maintain adequate plan governance.
• Generally management fees are charged as a percentage. Financial advisors can renegotiate management fees with providers, and make sure returns are maximized.
• Especially with trends towards Defined Contribution retirement plans, employees are given more freedom to control their investment portfolio. As a result of this, for the first time employees have to learn more about investment funds to make better financial decisions in their plans. Financial advisors can assist you and your organization with employee education sessions so you can elevate knowledge and understanding. You will also receive guidance and ongoing support on the plan as new employees enroll.

Financial
Advisors can help
with saving time,
reducing costs,
assistance on
education and
many more