Few people have a private pension these days. If anything, you are far more likely to have a
A group RRSP can be a helpful tool, but there are a few things to be aware of when you’re considering enrolling in your company’s plan.A Group RRSP will often, but not always, come with a matching contribution from the employer. An example might be 3 per cent of your salary; you contribute 3 per cent and your employer will match that contribution with their own contribution.
In most cases you will find a mix of actively managed asset class funds such as Canadian or U.S. equity mutual funds and target-date funds, which are structured to become more conservative the closer you get to retirement, and in some cases you will find index funds. Similar to investing outside of a group RRSP, your best bet is tracking down index fund options and using them to build a portfolio that matches your risk profile.
globeinvestor Well it’s better than defined benefit plans, as many employees from bankrupt companies found out. Only governments can sustain these DB plans with certainty, the rest of us are in defined contributory plans, and make the best of it.
globeinvestor Hey Look at the fees being charged by record keepers because they are often many many times more than the product cost. This part of the industry badly needs a cost revolution much like what happened to ETFs