Group retirement savings plans
Get to know what they are, how to find the ones you can join, and how they might fit into your overall saving strategy.
The difference between your program and your plans
Your program is the overall package offered by your organization to help you save for retirement. Within the program, you'll find different types of plans you can invest your money into to build your savings.
Which plans does your program offer?
Your program won’t offer all these plans. To find what’s available to you, check the information you got to help you join your program. It could have been a paper guide, a digital guide, or even a website.
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Registered Pension Plan (RPP) - Your employer always contributes to this plan and sometimes matches your contribution amount
- May lower the income tax you have to pay
- Don’t pay tax until you take money out
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Registered Retirement Savings Plan (RRSP) - You contribute to build your retirement savings
- May lower the income tax you have to pay
- Don’t pay tax until you take money out
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Tax-free savings account (TFSA) - You contribute to build your short- and long-term savings
- Don't pay tax on growth in the plan
- Don't pay tax when you take money out
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Deferred Profit-Sharing Plan (DPSP) - Only your employer contributes
- Don’t pay tax when your employer puts money in
- Don’t pay tax until you take money out
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Employee Profit-Sharing Plan (EPSP) - Your employer, or you and your employer, can contribute
- Pay tax on the money your employer puts in
- Pay tax on growth in the plan
- Don’t pay tax when you take money out
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Non-registered savings plan (NRSP) - You contribute to build your short-and long-term savings
- Pay tax on growth in the plan
- Don’t pay tax when you take money out
Comparing retirement savings plans
Plan | Tax treatment | Contribution limits | Withdrawal rules | Optimal use case |
|---|---|---|---|---|
Registered Pension Plan (RPP) | Contributions may lower income tax. Tax deferred until withdrawal. | Contribution limits are set by Canada Revenue Agency. | Taxed upon withdrawal. | Ideal for retirement savings with employer contributions. |
Registered Retirement Savings Plan (RRSP) | Contributions may lower income tax. Tax deferred until withdrawal. | Contribution limit based on income (up to $33,810 in 2026). | Taxed upon withdrawal. | Ideal for retirement or long-term savings, especially for tax deferral. |
Tax-Free Savings Account (TFSA) | Growth and withdrawals are tax-free. | The dollar limit for 2026 is $7,000. | Withdrawals are tax-free. | Ideal for both short- and long-term goals, tax-free growth. |
Deferred Profit-Sharing Plan (DPSP) | Employer contributions are tax-deferred until withdrawal. |
Contribution limits are set by Canada Revenue Agency. | Taxed upon withdrawal. | Ideal for employees whose employers share profits. |
Employee Profit-Sharing Plan (EPSP) | Contributions are taxed immediately. Growth is also taxed. | No annual contribution limit. However, if a specified employee contributes more than 20% of their income, they are subject to tax. | Withdrawals are tax-free. | Ideal for employees involved in profit-sharing with the option for personal contributions. |
Non-registered Savings Plan (NRSP) | Contributions are not tax-deferred; you pay tax on growth. | No annual contribution limit. | No tax on withdrawals, but growth is taxed. | Ideal for flexible savings with no contribution limits, but taxed on growth. |
How do group retirement savings plans work?
Group retirement savings plans (GRSPs) allow you to save for retirement through your organization's automatic payroll deductions and employer contributions. These plans offer tax-deferred growth which makes it easier and more efficient to build your long-term savings.
What are the benefits of group retirement savings plans?
GRSPs offer many advantages to help you save for retirement. Here are five key benefits:
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Tax deferral Contributions to a GRSP are tax-deferred, meaning you don’t pay tax on the money you contribute until you withdraw it in retirement. This can lower your taxable income and help your savings grow faster.
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Employer contributions Many employers match a portion of your contributions, giving you free money to help build your retirement fund. This can significantly boost your savings over time.
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Convenient payroll deductions Contributions are automatically deducted from your paycheque. This makes it easy and consistent to save for your future without having to think about it.
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Tax-sheltered growth The money in your GRSP grows without being taxed until it’s withdrawn. It allows for more compounding, helping you maximize your retirement savings.
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Professional investment management Most GRSPs offer a range of investment options managed by professionals, which helps you make informed choices to grow your savings while aligning with your retirement goals.
Explore group RRSPs
A Manulife group RRSP combines the benefits of an individual RRSP with the benefits of your group retirement program to supercharge both your tax savings and your retirement savings.
Make your money go further, faster.
How to make the most of your group retirement savings plans?
It’s easier to make smart decisions with easy-to-understand information, tools, and guidance—right where you need them.
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Putting money in your RRSP—why it's not too late to start Saving for retirement doesn't have to be daunting. Even if you're not regularly contributing now, it’s never too late to start contributing to your RRSP.
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Planning for retirement starts with knowing what you want your future to look like Our goal setting tool can help you:
- Estimate how much you need
- Make a plan to get there
- Track your progress
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Supercharge your group retirement savings program Partner with one of our advisors to learn what makes your group retirement program great and what makes it great for you.
Learn how our advisors can help
Helping you plan and save—at any stage of life
3 steps to maximize your group retirement savings
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1. Start early and save regularly The earlier you start contributing, the more your savings can grow over time. To make it even easier, set up regular payroll deductions and take advantage of compound growth.
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2. Maximize employer contributions If your employer offers matching contributions, contribute enough to take full advantage. This boosts your savings without any extra cost.
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3. Review and optimize your investments Regularly check your contributions and investment mix to ensure they align with your goals. Be sure to adjust them as needed based on changes in your financial situation.
Frequently asked questions
Enrolment in a GRSP is typically automatic through your employer. Once eligible, you’ll be provided with enrolment details and will have the option to select your contribution amount and investment choices. If enrolment isn't automatic, you can sign up through your employer’s benefits portal.
Yes, withdrawals from your GRSP are taxed as income at your current tax rate. However, since contributions are tax-deferred, you’ll only pay tax when you access the funds, typically during retirement when your income may be lower.
Yes, you can contribute to multiple retirement savings plans at the same time. This may include an RRSP and employer-sponsored plans, provided you stay within the contribution limits and rules set by Canada Revenue Agency for each plan.
Your retirement savings in employer-sponsored plans, like a Registered Pension Plan (RPP) or Deferred Profit-Sharing Plan (DPSP), may be transferred to a new employer’s plan, rolled over to an RRSP, or cashed out, depending on the plan’s rules.
Contribution limits vary by plan type. For example, RRSPs have a limit of $33,810 for 2026, while employer contributions to plans like RPPs and DPSPs are subject to different limits set by Canada Revenue Agency.
Withdrawals from group retirement savings plans are generally taxable, depending on the plan type. Amounts withdrawn from registered plans such as RRSPs and RPPs (if allowed) are taxed as income in the year of withdrawal. For DPSPs, employer contributions are typically taxable when withdrawn.