Dreaming and planning for your retirement? Saving for your future doesn’t need to be stressful. It can be easy.

In Canada, saving for retirement consists of three main avenues, also known as the “three pillars of retirement.” The three pillars are:

  1. Government based programs (Canada Pension Plan, Old Age Security, etc.),
  2. Employment based programs (like your IBEW Local 353 pension, and Group Registered Retirement Savings Plan (RRSP)) and,
  3. Individual savings (individual RRSPs, Tax Free Savings Accounts, personal savings, property, etc.).

A Group RRSP is a savings plan registered with the Canadian government where you and/or your employer on your behalf, can contribute over the course of your career until you retire. The government introduced RRSPs in 1957 to help Canadians save for their retirement.

Why contribute to your Group RRSP?  Taxes on RRSP contributions are deferred until retirement which means they reduce your current taxable income which will likely be at a higher tax bracket than your retirement income tax rate. In other words, it can help you pay less tax overall. Also, more money you contribute now, the more money you will have to retire with. And, the earlier you start saving, the more time you have for your money to grow. The reason for this is related to the time value of money. The longer the timeline you have to invest, the more money you can generate with your savings.

Your IBEW Local 353 Group RRSP is a “self-directed” plan. Self-directed means that when you enroll in the plan, you select from a list of investment funds where you would like your money to be invested. If you don’t make a choice, your money will automatically be invested in the Continuum Target Date Fund closest to the year you reach age 65. You can find information on the Continuum Target Date Fund by logging into the My Canada Life at Work website or app, click fund details, then click under fund reviews and fees.

You can change this selection at any time. You can make an appointment with a Canada Life representative to review your investment options by calling 1-800-724-3402 between 8:00 a.m. and 8:00 p.m. Monday to Friday.

For most members, for every hour you work, your employer contributes 3% of your wages to the IBEW Local 353 Group Retirement Savings Plan, administered by Canada Life. Once you join, you’ll receive quarterly updates showing how the investments you’ve selected are performing, along with the amount of contributions made or withdrawn during that quarter. You can also monitor your contributions online at My Canada Life at Work or by reviewing your Quarterly Contribution Statements from TEIBAS. For questions regarding contributing to your spouse’s RRSP or questions regarding transferring to another RRSP, please call Canada Life directly at 1-800-724-3402. Read your Group RRSP booklet posted on teibas.com to learn more.

Questions? We’re here to help! You can email us at members@teibas.com or call us at 416-637-6789 (toll-free 1-800-267-0602) for assistance during our regular office hours (Monday to Friday 7:30 a.m. – 4:30 p.m.).