13 May 2024

What is a VRSP?

Do you find that VRSP sounds like a new car model? Almost! In fact, a VRSP is a savings vehicle: a voluntary retirement savings plan.
Would you like to find out more? Hop in!

If your employer does not offer a group retirement savings plan, your employer could choose to suggest a VRSP to help you save for retirement. VRSPs are also accessible to self-employed workers as well as to any person who wants to save.

Does your employer offer a VRSP and you would like to be a member of that plan? No need to worry: your employer will sign you up automatically as soon as you are eligible for it. It is as simple as that! In addition, your employer will take care of deducting a fixed contribution from each pay. If your employer wants to, your employer could also pay a contribution for you. All you have to do is ensure that the total of your contributions in your personal RRSP does not exceed the maximum allowed per year. In short, joining a VRSP is planning a safe trip itinerary towards retirement!

Are you changing jobs? No worries. Your savings will follow you throughout your career.

Why should you contribute to a VRSP with your employer rather then invest in another retirement savings plan? Well, based on your needs, contributing to a VRSP could be more beneficial for you because of low administration costs. It is like driving a hybrid car: it will cost you less for gas! The savings will allow you to increase the accrued value of your retirement savings.

If in doubt, your financial planner can help you choose the savings vehicle that is best adapted to your situation. But be careful who you trust! The person must be authorized to practise and be qualified to answer your questions. To make an informed decision, you can consult the Register of firms and individuals authorized to practice on the Autorité des marchés financiers' website.

Note that VRSPs are a sure way of saving money: they are all registered with Retraite Québec and authorized by the Autorité des marchés financiers. Only authorized administrators can offer one.

Take the road towards retirement under the sign of financial peace of mind!

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