“Everybody wants something for nothing. So why then, when many large companies give away money to match employee RRSP contributions, do so many ignore the free lunch?
Insurer Sun Life Financial concludes from an analysis of 5,000 plans it administers that the two biggest reasons are people find it too confusing to do the paperwork to join, or they’re have trouble making ends meet and need the money now. As a result, Sun Life estimates that employees are turning their back on as much as $3 billion a year,” wrote Adam Mayers, Personal Finance Editor for The Star on June 24, 2015.
Mayers continued, “But what they’re leaving on the table is significant. Employers typically match contributions at between 50 cents on the dollar up to dollar for dollar. The average matching range is between 3 per cent and 6 per cent of the employee’s salary.
So, in the best case, somebody making $50,000 a year and putting $3,000 a year into an RRSP (6 per cent of salary), could be getting another $3,000 on the house.
Read the full article here.
Raymond Matt, CFP, CLU, TEP, CHS
Subscribe to: Post Comments (RSS2)