Private Retirement Plans
When I started my career, Defined Benefit Pension Plans were the standard retirement program offered by employers, followed by Defined Contribution Plans, and then Group RRSP's due to their simplicity and lower costs.
Under this section, I am going to review many different retirement plans offered to employees. Unfortunately, many employers do not offer their employees any type of retirement plan due to cost. An example of this is my father worked for an auto dealership for over 30 years prior to starting his own business, and he never had a retirement plan. One day I asked him why, and he told me that his employer gave his employees a choice of either a retirement plan or a Group Life & Health Plan, but they could not have both due to cost. As all of the employees were young with children, they wanted the Group Life & Health plan as it would provide them with Extended Health Care (EHC), which included Vision Care and a Dental plan.
Unfortunately, this is still true today where many employers especially small ones do not offer a retirement plan due to cost. One day a Vice President of one of the corporations that I managed explained to me as to why he would not promote their Voluntary Defined Contribution Plan to his employees was because he could not explain to the Board of Directors the sudden increase in costs if more people were to join the plan. In my opinion, this was a very shortsighted view to take, but I also understood that this individual would be retired long before the majority of his employees so in the long run it would not impact him, but it would impact others.
Wouldn't it be nice, if we could ensure that costs are managed, and that employees are taken care of at the same time??
Under this section, I am going to review many different retirement plans offered to employees. Unfortunately, many employers do not offer their employees any type of retirement plan due to cost. An example of this is my father worked for an auto dealership for over 30 years prior to starting his own business, and he never had a retirement plan. One day I asked him why, and he told me that his employer gave his employees a choice of either a retirement plan or a Group Life & Health Plan, but they could not have both due to cost. As all of the employees were young with children, they wanted the Group Life & Health plan as it would provide them with Extended Health Care (EHC), which included Vision Care and a Dental plan.
Unfortunately, this is still true today where many employers especially small ones do not offer a retirement plan due to cost. One day a Vice President of one of the corporations that I managed explained to me as to why he would not promote their Voluntary Defined Contribution Plan to his employees was because he could not explain to the Board of Directors the sudden increase in costs if more people were to join the plan. In my opinion, this was a very shortsighted view to take, but I also understood that this individual would be retired long before the majority of his employees so in the long run it would not impact him, but it would impact others.
Wouldn't it be nice, if we could ensure that costs are managed, and that employees are taken care of at the same time??
