{"id":1921,"date":"2026-02-01T17:00:07","date_gmt":"2026-02-02T01:00:07","guid":{"rendered":"https:\/\/immixgroup.ca\/blog\/?p=1921"},"modified":"2026-02-01T17:37:07","modified_gmt":"2026-02-02T01:37:07","slug":"group-savings-plans","status":"publish","type":"post","link":"https:\/\/immixgroup.ca\/blog\/2026\/02\/01\/group-savings-plans\/","title":{"rendered":"Group Savings Plans"},"content":{"rendered":"\t\t
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Group Savings Plans: A More Tax-Efficient Way to Pay Employees<\/h1>\n\n
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\n Lindsay Byrka, CFP\u00ae is Vice President at the Immix Group. She partners with employers to source and manage group life and health plans, and group savings and retirement plans, working with Canada\u2019s leading insurers to support transparent pricing and flexible plan design.\n LinkedIn<\/a>\n <\/p>\n <\/div>\n <\/header>\n\n

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When it comes to compensation, not all dollars are taxed the same. In many cases, contributing to a Group RRSP or DPSP delivers more value than paying the same amount as salary.<\/p>\n\n

Tax-advantaged compensation: how SMBs can level the playing field.<\/h2>\n\n

In working with our SMB clients, this is a conversation that comes up quite often- how to compete with larger employers, but on a tighter budget. Employers find that strategically using tax-advantaged employee compensation such as contributions to a Group Savings Plan, can help to bridge the gap.<\/p>\n\n

Registered plans continue to be one of the most effective financial planning tools in Canada, not only for individuals with personal Registered Retirement Savings Plans, but also for employers and employees participating in registered Group Savings Plans. For small and mid-sized businesses, Group Savings Plans can deliver meaningful tax advantages, often providing more value per compensation dollar than salary increases alone. This article explains how Group RRSPs and Group DPSPs work, and why their tax treatment makes them a practical and powerful part of an employer\u2019s overall compensation strategy.<\/p>\n\n

Why Group Savings Plans matter: the tax value of Group RRSPs and Group DPSPs.<\/h2>\n\n

Groups Savings and Retirement programs are a key part of a comprehensive benefits program. We\u2019ve written extensively about the value of life, disability<\/a>, mental health<\/a>, dental, extended health and health and wellness spending accounts<\/a> for employees, and a Group Savings Plan complements all of these.<\/p>\n\n

When it comes to Group Savings Plans, particularly Group RRSPs and Group DPSPs, they deliver financial security, tax efficiency, and long-term value. From an employer perspective, these plans are not just retirement tools. They are high-impact, tax-efficient compensation strategies that support attraction, retention, and employee financial wellbeing<\/a> \u2014 often at a lower cost than salary compensation.<\/p>\n\n

Group RRSPs \u2014 Immediate, Visible Tax Value for Employees<\/h2>\n\n

What makes a Group RRSP valuable?<\/h3>\n\n

A Group Registered Retirement Savings Plan works much like an individual RRSP \u2014 but with one key difference: employee contributions are typically made through payroll, using pre-tax dollars. That small structural difference creates a much more visible and tangible benefit for employees. Employees see the benefit right away \u2014 on every paycheque \u2014 rather than waiting until tax time.<\/p>\n\n

With payroll-based Group RRSP contributions:<\/p>\n