One of the best ways to save for your retirement is through a Group RRSP. It’s affordable and convenient! Here are 10 great reasons to contribute to a group RRSP plan.

1. Low cost –Unlike many bank GICs or mutual funds, you only need a minimum contribution as low as $25. The more you save and the longer you can do so, the bigger your retirement income will be.
2. Defer taxes –All RRSP contributions reduce the income tax you pay. Investment earnings grow tax-free until you withdraw them.
3. Immediate tax relief –A $25 contribution only costs you $17.50 off your net pay (assuming a 30% tax bracket) because you get your tax break when each contribution is made.
4. Payroll deduction –Your contribution is deducted from your paycheque before you have a chance to spend it somewhere else. This can be a painless way to save.
5. No front or back end loads –Most group plans (but not all) have no fees charged for moving assets from one investment to another. There are no hidden administration costs – the investment management fees you pay are negotiated between your service provider and your employer.
6. Access to competitive investment options – Most plans offer you investments from a variety of top managers. The fund management fees are usually much lower than what you would pay yourself because you’re part of a larger group.
7. Contribute on behalf of your spouse (if offered in your plan) – If the income levels between you and your spouse differ significantly, the higher earner should make the RRSP contributions to get the biggest tax break. At retirement, the lower earner makes withdrawals from the Spousal RRSP at a lower tax rate.
8. Online or toll-free phone service – Most service providers provide amazing support with comprehensive web sites, automated telephone inquiry system or Customer Care call center to obtain account information, monitor investments, or process transactions
9. Retirement planning tools – A variety of tools are available on the Web site to help you monitor your contribution amounts and investment returns. There is no shortage of information tools and resources to help you plan for your retirement.
10. Matching programs. Many employers create incentives to participate in Group RRSP programs by matching employee contributions. In these cases, it’s a no brainer to participate.