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Why a PRPP?

So why has the government decided to establish pooled registered pension plans (PRPPs)?

According to the Canadian government, it’s estimated that only 60 per cent of workers in Canada have access to a workplace retirement plan.

The PRPP gives you the opportunity to help your employees proactively save for it without taking your attention away from your business.

Workers in Canada need more opportunities to save for their retirement through their workplace. Workplace pension plans are important in two ways:

  1. They make it easier for workers to save through payroll deductions.
  2. They give workers in Canada access to lower investment management fees than what they may get in their personal retirement plan.

And while having a workplace pension plan is important there are some key factors in the PRPP that make them work even better:

  1. Every eligible employee is automatically enrolled. This means they don't have to go through a lot of paperwork to start saving.
  2. Employees can start saving but can postpone some retirement planning decisions because the default choices are appropriate for long-term savings.
  3. The investment selection is streamlined so employees aren’t overwhelmed by investment decisions.

The PRPP will give many employees their first opportunity to save for retirement at their workplace. And if you’re reading this, you’re probably an employer wondering how you can provide employees with access to a PRPP—and how much work that will mean for you.

Thanks to the way the Canadian government has set up the PRPP and Great-West Life’s experience with small- to medium-sized businesses, you can leave most of the administration and governance responsibility to us. This leaves you to spend more time on what really matters: your business.