Planning for Retirement: A Smart Group Benefits Choice

Planning for retirement can seem complicated, especially for small business owners who want to offer their employees a truly beneficial group benefits plan but are unsure where to start. In today’s fast‐paced world, ensuring that your team is well‐covered for the future is more important than ever. That’s where FutureStep®, a retirement plan powered by Manulife, comes in. Designed to be simple, low-cost, and flexible, FutureStep® is an excellent choice for Canadian employers with as few as two employees.

FutureStep Retirement Plan Graphic

What is FutureStep®?

FutureStep® is a group retirement plan that smartly combines two valuable savings tools: a Group RRSP and an optional Deferred Profit-Sharing Plan (DPSP). It is tailor-made for small businesses, providing both employers and employees with a clear, guided approach to save for the future while reaping immediate benefits today.

The plan champions the idea that saving for retirement should not be a burden. Instead, FutureStep® makes the process straightforward with its comprehensive approach and professional oversight from Manulife, one of Canada’s most trusted names in insurance and investment management.

Group Benefits Illustration

Group RRSP: Easy, Immediate Tax Benefits

With the Group RRSP component, employees can comfortably contribute a portion of their paycheck toward retirement savings. One of the major benefits is the immediate tax relief that comes with this arrangement. Since contributions are deducted from pay before taxes are calculated, employees benefit from a reduction in their taxable income, putting more money back into their pockets from the very first contribution.

This seamless integration of tax benefits makes FutureStep® more than just a retirement plan – it transforms saving into a habit that builds wealth over time without the added stress of complex financial management.

Deferred Profit-Sharing Plan: Rewarding Employee Success

For employers looking to further motivate their teams, the optional Deferred Profit-Sharing Plan (DPSP) is a fantastic add-on. Funded entirely by the employer, this benefit allows companies to share part of their annual profits with their employees, effectively linking financial success to personal rewards. This not only inspires employees to contribute at their best but also strengthens the bonds between employer and team.

By offering a DPSP alongside the Group RRSP, FutureStep® encourages a culture of shared growth and mutual investment in success, making it an ideal strategy for building long-lasting employee loyalty and retention.

Streamlined Management through Payroll Deductions

One of the most daunting tasks when setting up a workplace benefit plan is the administration of contributions. FutureStep® eliminates this hassle by integrating automatic payroll deductions, ensuring that both employee and employer contributions are processed reliably every pay period. No need for cumbersome paperwork or repetitive tasks – the system is designed to be self-sustaining and efficient.

All plan setup, contribution payments, and tracking are managed through an intuitive online portal available in both English and French. The transparency and ease of access mean that both employers and employees can check their balances, review statements, and monitor progress anytime, anywhere – whether on desktop, mobile, or tablet.

Payroll Deductions Process

Flexible Investment Options and Low Fees

A standout feature of FutureStep® is its commitment to minimizing fees while providing flexibility. Many personal mutual funds can incur high fees that, over time, erode your retirement savings. With FutureStep®, employees enjoy lower fees, meaning more of their money stays invested – compounding for their future advantage.

Moreover, the plan offers a variety of investment styles to suit each individual’s preference:

No-Touch: Let the experts manage investments according to age and goals.
Low-Touch: Select from a curated list of options with professional guidance.
Build-Your-Own: For hands-on investors who want to tailor their portfolios.

Regular statements and user-friendly planning tools further ensure that employees always understand how their savings are performing, reinforcing confidence in their financial future.

Professional Oversight by Manulife

Backing FutureStep® is Manulife, a stalwart in the Canadian insurance and investment space. With Manulife’s expert oversight, the fund lineup within FutureStep® is continuously reviewed and diversified to mitigate risks. This professional management ensures that retirement funds are not only preserved but are well-positioned to grow over time.

This level of professional care and oversight provides both employers and employees with peace of mind, knowing that their savings are managed with diligence and strategic foresight.

How to Get Started

Taking the first step toward securing a solid retirement plan for your employees is as simple as reaching out. Begin by discussing your options with your financial advisor or send an email to [email protected]. The online application is streamlined and designed to guide you through every step of the process seamlessly.

Once the application is complete, you will receive a comprehensive welcome kit that contains all the information needed to confidently manage and grow your employees’ retirement savings. With minimal setup requirements and a commitment to simplicity and transparency, FutureStep® is perfectly suited for small business owners.

Why Choose FutureStep®?

FutureStep® stands out in the realm of group benefits for several reasons:

Designed for Small Businesses: Only $10,000 minimum annual deposit required, making it accessible for companies of any size.
Automatic Payroll Deductions: The hassle-free setup takes the guesswork out of saving for retirement.
Immediate Tax Advantages: Employees benefit from reduced tax liabilities right away.
Optional Profit Sharing: Employers can reward outstanding performance by sharing profits, enhancing team motivation and loyalty.
User-Friendly Online Portal: Bilingual support and real-time tracking empower both employers and employees.
Backed by Manulife: The trusted expertise and diversified investment strategies ensure optimum fund performance and risk management.

In summary, FutureStep® isn’t just another retirement plan – it’s a comprehensive group benefits solution that allows small Canadian employers to offer a professional, affordable, and flexible pathway to a secure retirement. With immediate tax breaks, lower fees, automated processes, and the added incentive of a profit-sharing plan, FutureStep® is a smart, forward-thinking choice to enhance employee satisfaction and build a robust financial future.

If you are ready to take the next step in providing outstanding group benefits to your employees, now is the time to act. A well-structured retirement plan not only improves employee morale but also contributes significantly to attracting and retaining top talent in your organization.

Embrace the future confidently with FutureStep®—where simplicity meets innovation in retirement planning for today’s small business environment.

Disclosure

All quotes, products, and services are marketed and distributed by Red Helm Canada, an independent brokerage. Review our brokerage disclosure to find out more about who we are. While all effort is made to ensure accuracy, rates and plan details may be subject to review or change without prior notice. Rates are not guaranteed until final approval and confirmation from the insurance carrier. Plan eligibility is not guaranteed and may be subject to a medical questionnaire or other eligibility criteria. By submitting your information in our quote request form, you are accepting the terms and conditions of our website and are accepting that we communicate with you electronically for the purpose of solicitation.

Simple low cost group retirement plans for small Canadian employers