Becoming a member of a pension plan
provided by your employer is...reassuring, brillant, beneficial.

Income under public retirement plans from the Government of Canada (Old Age Security program) and the Gouvernement du Québec (Québec Pension Plan) provides basic protection in the event of retirement. However, it is not sufficient to ensure that you can maintain your standard of living. To carry out your projects and continue doing what you love when you retire, you must have savings to bridge the gap.

Workplace pension plans provide income that is added to income under public plans and to your personal savings. Becoming a member of a workplace pension plan can therefore help you have adequate income to maintain your standard of living throughout retirement.

Make the most of it

Among all the persons who work in Québec, more than 55% are members of a workplace pension plan or have a group savings plan.

Take advantage of this opportunity without delay if you are a Québec worker who has such a privilege.

A pension plan is brilliant!

Find out the advantages...

Employer's contribution ? An employer who offers a pension plan sometimes pays a contribution with you, which represents an advantage that really pays off. Not joining a plan to which your employer makes contributions is like turning down free funds.
Payroll deductions ? In general, contributions can be automatically withheld from your pay, which makes it easier to save. It has been proven that people save more when they do not have to transfer an amount from their bank account themselves to a retirement savings plan.
Immediate tax savings ? Your contributions are tax deductible, except those in a TFSA, and your income accumulates tax-free!
Managing the financial risks associated with retirement ? Since you will be able to save more for your retirement, your membership in a workplace pension plan could help you manage the following two financial risks associated with retirement: longevity risk and inflation risk.
Advantageous management fees ? The management fees are normally lower in group plans rather than in individual plans. When you retire, small savings on management fees can represent several thousands of dollars.

Are you a member of your workplace pension plan?

If so, good job! But do you really know its advantages and limits? Which plan are you a member of? Can you name it? To find out all the particularities of your pension plan, ask for information and consult the documents related to your pension plan. It is important for you to pay attention to your plan now because it is a key element in financial planning for retirement.

Take a few minutes to find your plan or group savings plan among the following.

It is a plan to which the employer or you and the employer must make contributions.

There are 3 types of supplemental pension plans:

Defined-benefit pension plan
In this plan, the amount of the retirement pension is set in advance, based on a predetermined formula. In general, it is a percentage of the pensionable salary multiplied by the years of credited service. Contributions are adjusted periodically to fund benefits under the plan.
For more information
Defined-contribution pension plan
This plan provides for the employer's contribution and, if applicable, yours. Retirement income is not known in advance because it is determined based on amounts accrued and other factors such as interest rates at the time of retirement.
For more information
Target-benefit pension plan
In this plan, the employer's contribution and the target benefit are set in advance. Retirement income is determined based on the plan's financial situation and adjustment of the target.
For more information

The purpose of this plan is to allow all workers to have access to a pension plan, including self-employed workers. In Québec, businesses of a certain size are required to offer this plan or another retirement savings vehicle. When you choose to be a member of the plan, you determine your contribution yourself. The employer is not required to make contributions to the plan.
For more information

It is a group of individual RRSPs. Usually, contributions to those plans are deducted from your pay. The goal is to make payment of contributions to individual RRSPs easier.
For more information

An employer can also offer you to invest in a TFSA. Contributions that will be paid in that account are not tax deductible. However, investment income and withdrawals, which can be done at any time, are not taxable.
For more information

Good advice

Your employer offers a pension plan. That is great! Is membership in the plan optional? Become a member without delay to make the most of it. If you can choose the contribution, choose the one that will maximize your retirement income, while sticking to your budget, of course!

If you are a member of the workplace pension plan, consult your statement related to the plan. It is an essential tool to plan your retirement.

You are not a member of any workplace pension plan?

In Québec, several persons like you are not members of a workplace pension plan. It is therefore harder for them to save sufficiently for retirement. If that is your case, you will have to save more to protect yourself against the financial risks related to retirement, like for example, longevity risks and inflation risks. Knowing these risks and their effects on your income allows you to better plan for your retirement. Find out how to avoid unpleasant surprises!

Take a few minutes to find your plan or group savings plan among the following.

A workplace pension plan is not offered?

Do not panic! You can ask your employer to set up a voluntary retirement savings plan (VRSP) or another savings vehicle. Furthermore, in Québec, businesses of a certain size are required to offer this plan or another retirement savings vehicle.

Your employer is not required to offer a VRSP? Are you a self-employed worker?

Good news! The voluntary retirement savings plan also allows you to have access to a pension plan! Simply choose a VRSP registered with Retraite Québec and contact the plan's administrator.

Whether you are an employee, self-employed, a business owner or someone for whom saving is a priority, VRSPs are affordable and feature easy-to-understand investment options.

A pension plan is beneficial

Does your employer offer a voluntary retirement savings plan (VRSP)? Is membership in the plan optional? See for yourself how it can be beneficial to become a member as soon as possible to make the most of it! If you can choose the contribution, choose the one that will maximize your retirement income and stick to your budget, of course!

Comparison of amounts accrued at age 65

Salary: $50 000
Age at which you became a member: age 25

Julie-Anne

Member contribution
4%

Employer contribution
0%

$123 068

Zoé

Member contribution
6%

Employer contribution
0%

$184 602

Édouard

Member contribution
4%

Employer contribution
4%

$246 136

Tools to help you plan your retirement

Are you a member of a VRSP?
View what you could save here by the time you retire using the VRSP calculator!

Are you a member of another type of workplace pension plan? Start SimulR.

Becoming a member of a pension planprovided by your employer is...reassuring, brillant, beneficial.