What benefit comes with participating in a group RRSP offered by an employer?

Participating in a group RRSP (Registered Retirement Savings Plan) offered by an employer typically allows employees to benefit from employer-matched contributions. This means that for every dollar an employee contributes to their group RRSP, the employer may also contribute a certain percentage, effectively increasing the employee’s savings for retirement. This matching contribution represents a valuable benefit as it enhances the overall value of the retirement savings plan, providing a larger nest egg for future retirement needs without requiring additional savings from the employee.

Employer matching can vary based on the specific terms set by each employer, but the incentive encourages employees to save more towards their retirement. This benefit stands out as one of the primary reasons individuals might choose to participate in a group RRSP through their workplace, making it a key component of their long-term financial planning.