With its new Deferred Profit Sharing Plan (DPSP) option, Manulife Financial’s FutureStep product now offers small and mid-sized Canadian businesses more choice and flexibility in helping employees save for retirement.
The recently added DPSP option combines with FutureStep’s Group RRSP to offer best-of-class investments, education and online services in a cost-effective retirement savings plan typically only available to large employers.
“Currently, more than 7.6 million Canadians employed by small to mid-sized businesses do not have access to a workplace retirement savings program,” said Sue Reibel, senior vice president of group benefits and retirement solutions, (TSX:MFC).
“According to Manulife’s recent National Workplace Savings Survey, almost all working Canadians, regardless of province, say they would participate in a workplace retirement savings plan if it was offered. FutureStep, with its new DPSP option, is great choice for employers who want to help their employees save for retirement without the administrative burden of a large, complex pension plan.”
Originally launched in 2011, FutureStep is designed specifically for small to mid-sized businesses. The product includes online plan administration and contribution remittance, and is available through a quick and easy online application process.
Low investment management fees make the plan economical for employees, while the ease of contributing through payroll deduction gives them an immediate tax benefit — allowing them to save even more for the future. The plan includes a selection of funds from experienced investment managers.
The addition of a DPSP now gives an employer the option of linking plan contributions to the profitability of the business and, on a periodic basis, sharing business profits with employees by contributing to the DPSP on each employee’s behalf.