{"id":1834,"date":"2025-11-02T20:27:50","date_gmt":"2025-11-03T04:27:50","guid":{"rendered":"https:\/\/immixgroup.ca\/blog\/?p=1834"},"modified":"2025-11-03T06:49:56","modified_gmt":"2025-11-03T14:49:56","slug":"top-5-questions-from-employers-when-considering-a-group-savings-plan","status":"publish","type":"post","link":"https:\/\/immixgroup.ca\/blog\/2025\/11\/02\/top-5-questions-from-employers-when-considering-a-group-savings-plan\/","title":{"rendered":"Top 5 Questions from Employers When Considering a Group Savings Plan"},"content":{"rendered":"\t\t
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Top 5 Questions from Employers When Considering a Group Savings Plan <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tby\u00a0Lindsay Byrka, CFP\u00ae\u00a0<\/a>Vice President,\u00a0Immix Group<\/a><\/strong>\n\n
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November is Financial Literacy Month in Canada<\/a>, and the theme this year is \u201cTalk Money.\u201d The idea is \u201ctalking about money with others can provide opportunities to learn new tips and resources, which can increase financial knowledge and confidence and can ultimately lead to better financial decisions.\u201d\n\nWhen it comes to working with our SMB clients here in Canada, our focus at the Immix Group is on guiding employers in designing, implementing and managing Group Savings Plans that meet their objectives. Most commonly, these goals are to provide an avenue for saving, to supplement this with an employer match, and to support employees in improving their financial literacy and overall ability to meet their retirement savings goals.\n\nPlease note that with pensions less common these days, we\u2019re focusing on the plans we see employers implementing: Registered Retirement Savings Plans (RRSPs), Deferred Profit-Sharing Plans (DPSPs) or Tax Free Savings Accounts (TFSAs).\n\nIt\u2019s understandable that employers have a lot of questions and concerns, especially as they navigate implementation of a program for the first time. Here are the top questions we get from employers when it comes to their employer-sponsored Group Savings Plans.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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1)\tHow much does it cost to set up a Group Savings Program? <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The good news is that a Group Savings Program does not come with high administrative fees or annual charges. In most cases, there are no setup fees, and ongoing employer administration is minimal. There can be small one-off costs for certain infrequent situations, and these are often charged to the plan member.<\/p>

The main cost to the employer is the contribution they choose to make to employees\u2019 investment accounts\u2014if any. Employer contributions are optional, and while plans can be structured as employee-only, participation tends to be higher when the employer contributes even a small amount.<\/p>

Beyond employer contributions, the primary costs within a Group Savings Program are the Investment Management Fees (IMFs). These are charged by the investment fund managers, not the employer. In simple terms, these fees are deducted from investment returns\u2014for example, if a fund earns 10% and carries a 1% IMF, the member\u2019s net return is 9%.<\/p>

These fees cover the services of the provider including those required for CAP compliance (more on this later):<\/p>