Many employers offer pension plans, group retirement savings plans, or other workplace savings plans. They do it to help attract and retain higher quality employees. And, the company gets a tax break.
These work plans can be a great help in saving for retirement because:
- They help you save money regularly from your pay.
- Often your employer contributes some money if you do. That's like getting free money to help you plan for your future.
- You won't have to pay taxes on the money your investments make in these plans, until you retire and use the money.
- Your workplace savings could be your main source of income when you retire. If you're like most people, though, you may need money from other sources as well, such as government plans and your own savings and investments.
Remember: A workplace savings plan is often a great deal
If your employer offers a pension or retirement savings plan, look into joining. It's a great way to get started on saving for when you retire.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.