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- Manulife Group RRSPs provide immediate tax savings through payroll deductions and tax-deferred investment growth
- The platform features easy online administration, including enrollment and plan management tools
- Investment options include target-date funds, guaranteed interest accounts, and socially responsible portfolios
- Employees have access to financial education tools, retirement calculators, and a mobile app for plan management
- Plan fees are typically lower than retail mutual funds, making it a cost-effective retirement solution
- What is Manulife Group RRSP?
- What are the types of Group RRSPs offered by Manulife?
- What is the FutureStep® Group RRSP Plan by Manulife?
- How to enroll in a Manulife Group RRSP?
- How to access a Manulife Group RRSP after it’s set up?
- What investment options are available in Manulife Group RRSPs?
- What fees are associated with Manulife Group RRSPs?
- What retirement planning tools and resources does Manulife provide?
- What are the tax implications of participating in a Manulife Group RRSP?
- How does the DPSP component work in Manulife’s FutureStep Group RRSP?
- What happens to a Manulife Group RRSP when an employee quits?
- What are the pros and cons of a Manulife Group RRSP?
- Frequently asked questions
Group RRSPs are playing a bigger role in how Canadians save for retirement, and Manulife stands out as one of the most reliable group insurance providers. With a strong track record, diverse investment options, and user-friendly digital tools for both employers and employees, Manulife makes retirement planning straightforward and accessible.
In this article, we’ll cover how Manulife Group RRSPs work, their key features, available investment choices, and more.
What is Manulife Group RRSP?
The Manulife Group RRSP is a workplace retirement savings plan that gives employees a simple, tax-efficient way to save for retirement through payroll deductions. Employers can add value by matching contributions and offering a structured savings plan.
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What are the types of Group RRSPs offered by Manulife?
Manulife offers two main types of Group RRSPs to help employers support their employees in building long-term financial security: the Standard Group RRSP and the FutureStep Group RRSP.
These plans are designed to suit businesses of all sizes, from large corporations to small and mid-sized companies, by providing flexible, tax-efficient savings options and user-friendly administration.
Standard Group RRSP
This plan is offered to employees through their employers, with contributions made via payroll deduction. Employees benefit from immediate tax savings and the convenience of automatic contributions.
The plan includes access to a broad selection of investment options, as well as online tools to help employees manage their accounts and plan for retirement with confidence.
FutureStep Group RRSP
Designed specifically for small to medium-sized businesses, the FutureStep Group RRSP includes a Registered Retirement Savings Plan (RRSP) along with an optional Deferred Profit Sharing Plan (DPSP) component funded entirely by the employer.
It provides access to high-quality investment options, user-friendly online administration, and educational resources typically reserved for larger organizations.
What is the FutureStep® Group RRSP Plan by Manulife?
The FutureStep Group RRSP is a workplace savings plan designed for small and mid-sized Canadian businesses. It combines a group RRSP with an optional Deferred Profit Sharing Plan (DPSP), offering a flexible and cost-effective retirement savings solution
What are the key features of Manulife FutureStep® Group RRSP?
The Manulife FutureStep® Group RRSP offers a simple, flexible, and tax-efficient retirement savings solution for Canadian employers and employees. Whether you’re a small business owner or part of a growing organization, Manulife’s Group RRSP provides a wide range of features that make retirement planning easier and more effective.
Here are the key features of Manulife’s FutureStep® Group RRSP plan:
- Easy online plan setup and administration
- Comprehensive employee support and retirement education
- Flexible investment options for all experience levels
- Competitive, low investment management fees (IMFs)
- Immediate tax savings for employees
- Strong recruitment and retention benefits for employers
Easy online plan setup and administration
Manulife designed FutureStep® to simplify retirement plan management. Employers can quickly apply online, set up the plan seamlessly, and enjoy hassle-free ongoing administration. Manulife’s secure website allows easy submission of contributions and provides clear, accessible reports. Support is available in both English and French through the customer service centre.
Comprehensive employee support and retirement education
Employees receive top-tier resources to help them plan and save for retirement. This includes online retirement planning tools, personalized annual statements, and access to the Steps Retirement Program®, Manulife’s leading educational platform. Licensed financial education specialists offer ongoing guidance, while online enrolment and account management make participation simple.
Flexible investment options for all experience levels
FutureStep® accommodates employees with different investment knowledge and preferences:
- Target Date Funds (Ready-made, No investment involvement): Automatically adjust asset allocation based on retirement timing
- Asset Allocation Funds (Guided, Minimal investment involvement): For employees who want some involvement but less complexity
- Market-based funds and Guaranteed Interest Accounts (Do-it-yourself, Investment involvement required): For experienced investors managing their own portfolios
Competitive, low Investment Management Fees (IMFs)
Manulife’s group plan investment fees tend to be lower than those of individual mutual funds or bank-managed accounts. Lower fees help employees’ savings grow faster over time.
Immediate tax savings for employees
Employees receive immediate tax savings because payroll contributions lower their taxable income. As a result, they pay less income tax while consistently growing their retirement savings.
Strong recruitment and retention benefits for employers
By offering the FutureStep® Group RRSP, employers enhance their compensation packages, making their workplaces more attractive to top talent. The plan can foster employee loyalty by supporting long-term retention through financial security.
Who is eligible for the FutureStep® Group RRSP plan by Manulife?
The FutureStep Group RRSP is designed for businesses with at least two employees and a minimum combined annual contribution or asset transfer of $30,000 over a three-year period.
How to enroll in a Manulife Group RRSP?
Enrolling in and managing a Manulife FutureStep® Group RRSP is straightforward for both employers and employees. Employers begin by setting up the plan through a licensed group benefits advisor, customizing the design to fit their company’s needs.
Employees can then easily enroll and manage their accounts through a secure online portal or mobile app, accessing all the tools they need to save, invest, and track progress.
To enroll into a Group RRSP plan, as employers, you need to follow these key steps:
- Choose your plan design: Select features such as contribution options and eligibility criteria
- Decide on employer matching: Determine if and how much the employer will match employee contributions
- Customize investment options: Work with Manulife to set up the investment lineup that best suits your workforce
- Provide company and administrative details: Submit essential business information such as legal company name, business number, fiscal year-end, and contact details for authorized signatories and plan administrators
- Set contribution frequency and method: Choose how often contributions will be submitted (weekly, bi-weekly, or monthly) and specify the payment method (e.g., Pre-Authorized Debit)
- Define plan eligibility and enrollment rules: Decide who can join (full-time, all employees), any waiting periods, and contribution formulas
- Establish communication preferences: Specify the languages and channels (digital, email, written) for member communications
- Complete compliance and documentation: Review and approve all submitted information; sign plan documents to activate the plan within designated timelines
How to access a Manulife Group RRSP after it’s set up?
Once the plan is set up, employees can easily access and manage their Group RRSP accounts:
- Visit Manulife’s official website: Go to manulife.ca
- Select “Group Retirement”: Enter your plan information provided by your employer
- Log in with your Manulife ID: Securely access your personal account
- Manage your retirement savings: Use online tools to monitor balances, choose investments, and track goals
- Mobile app access: The Manulife mobile app offers full account management features on the go, including transaction history and educational resources
How do employer matching contributions work in a Manulife Group RRSP?
Employer matching contributions is a popular feature of a Group RRSP, and Manulife offers flexible ways to set it up. Here are common matching types:
- Dollar-for-dollar matching: The employer contributes the same amount as the employee, usually up to a certain percentage of the employee’s salary (often 3–6%)
- Partial matching: The employer contributes a part of what the employee puts in, like 50 cents for every dollar contributed
- Tiered matching: The matching rate changes based on factors like how long the employee has worked at the company
- Annual lump sum: The employer gives a fixed yearly amount, no matter how much the employee contributes
What investment options are available in Manulife Group RRSPs?
Manulife offers a wide variety of investment choices to match different employee risk levels and retirement goals. Here are the main options:
Core investment options:
- Target-date funds: These age-based funds automatically adjust their mix of stocks and bonds as you get closer to retirement
- Guaranteed Investment Accounts (GIAs): Safe investments that protect your principal and pay a guaranteed interest rate
- Money market funds: Low-risk, short-term investments focused on preserving capital
- Bond funds: Fixed income funds with different levels of risk and maturity dates
- Equity funds: Stock funds investing in Canadian, U.S., and international companies, with various styles like growth or value
- Balanced funds: Ready-made portfolios mixing stocks and bonds for balanced growth and income
- Socially responsible investing (SRI): Funds that consider environmental, social, and governance (ESG) factors in their choices
Advanced investment options:
- Fund-of-funds: Professionally managed portfolios made up of multiple funds, offering diversification in one package
- Risk-based portfolios: Portfolios designed for different risk levels (conservative, moderate, or aggressive) to help investors match their comfort zone
- Self-directed brokerage: For experienced investors who want to pick from a broader range of investments beyond the standard options
What fees are associated with Manulife Group RRSPs?
Manulife Group RRSPs involve several types of fees, including Investment Management Fees, Administrative Fees, and Contract Fees.
Investment Management Fees (IMFs): These fees usually range from about 0.35% to 1.2%, depending on the investment option. They are generally much lower than retail fees, which can exceed 2%. IMFs are often shown as Management Expense Ratios (MERs)
Administrative fees: These fees cover the plan’s ongoing management and may be paid by the employer or passed on to employees. They can be a flat fee per member or a percentage of the plan’s assets. Employers can often negotiate these fees based on plan size and total assets
Contract fees: Some plans include extra contract-level fees for specialized services. These fees are often waived for larger plans
What retirement planning tools and resources does Manulife provide?
Manulife goes beyond basic plan administration by offering a wide range of educational tools and resources designed to support employees at every stage of their retirement journey. These include:
- Retirement income projections: Personalized forecasts based on individual savings rates and investment choices, helping employees plan effectively
- Financial wellness programs: Comprehensive education that covers all aspects of financial health, not just retirement planning
- One-on-one consultations: Access to retirement specialists who provide personalized guidance customized to each employee’s unique situation
- Group seminars and webinars: Regular sessions that educate employees on key retirement topics and strategies
- Step-by-step guides: Clear resources to help employees navigate major life changes such as approaching retirement or changing jobs
- Benchmarking tools: Features that allow members to compare their savings rates and account balances against peers for better goal setting
What are the tax implications of participating in a Manulife Group RRSP?
Participating in a Manulife Group RRSP offers significant tax advantages for both employees and employers, making it a smart choice for retirement planning. Here are the key tax implications:
For employees:
- Immediate tax savings: Payroll deductions reduce taxable income right away
- Tax-deferred growth: Investments grow tax-free within the RRSP
- Taxable withdrawals: Withdrawals are taxed as regular income, usually at retirement, based on your marginal tax rate
- Withholding taxes: Early withdrawals face withholding taxes between 5% and 30%, rate withholding taxes differ in Quebec
- Special programs: Home Buyers’ Plan and Lifelong Learning Plan allow tax-free temporary withdrawals
For employers:
- Tax-deductible contributions: Employer contributions qualify as business expenses
- Payroll tax savings: Employer matching contributions are exempt from CPP, EI, and other payroll taxes
- Cost efficiency: Contributions offer a more tax-efficient compensation method than salary increases
How does the DPSP component work in Manulife’s FutureStep Group RRSP?
The Deferred Profit Sharing Plan (DPSP) is an employer-funded retirement savings feature that complements the Group RRSP. It enables businesses to share profits with employees in a tax-efficient manner. Here are the key features of the DPSP component of Manulife FutureStep® Group RRSP
- Employer-only contributions: Only employers can contribute to the DPSP, typically based on company profitability. These contributions are discretionary and can vary annually
- Tax advantages: Employer contributions are tax-deductible for the company and grow tax-deferred for employees until withdrawal
- Vesting period: Employers may set a vesting period (up to two years), requiring employees to remain with the company for a specified time before gaining ownership of DPSP funds
- Contribution limits: Annual employer contributions are capped at 18% of an employee’s compensation or half of the money purchase limit, whichever is less. These contributions reduce the employee’s RRSP contribution room for the following year
- Investment options: Employees can choose how their DPSP funds are invested from a range of options provided by the plan
- Withdrawal and portability: Employees are not taxed on DPSP contributions or investment growth until withdrawal. Once vested and upon leaving the employer, employees can transfer DPSP funds to an RRSP or other registered plan, or withdraw them (with taxes applied at that time)
What happens to a Manulife Group RRSP when an employee quits?
When an employee leaves a company with a Manulife Group RRSP, several options help manage their retirement savings smoothly and compliantly.
Transfer options include:
- Leaving funds in the existing plan, if the employer allows, without further contributions
- Transferring assets to a personal RRSP at Manulife or another financial institution
- Moving savings to a new employer’s compatible retirement plan
- Withdrawing cash, which incurs withholding taxes and is added to taxable income
- Converting funds to a Registered Retirement Income Fund (RRIF) for those nearing retirement
Administrative aspects:
- Vesting schedules are applied automatically to employer contributions to determine ownership
- Transfers are generally completed within 10-15 business days
- Departing employees receive clear communication packages outlining their options
What are the pros and cons of a Manulife Group RRSP?
When considering a Manulife Group RRSP, it’s important to weigh both the benefits and potential drawbacks. Understanding these factors can help you decide if this retirement savings option aligns with your financial goals and workplace benefits strategy.
| Pros | Cons |
| Convenient payroll deductions: Contributions are automatically deducted from your paycheck, making saving easy and consistent | Investment selections may be limited: Compared to individual RRSPs, group plans often offer fewer investment choices and typically do not allow buying individual securities |
| Mix of investment options availble: Includes mutual funds, target-date funds, and guaranteed investments suited to various risk levels and goals | Fees can vary: Some Manulife funds may carry higher management expense ratios (MERs) from 0.3% to 1% or more, which can affect long-term returns |
| Online account management: Easy access via Manulife’s portal and mobile app to track and manage your account | Employer contributions are taxable benefits: These count as taxable income for employees and may impact your overall tax situation. |
| Support and education: Access to planning tools, calculators, retirement readiness scores, and webinars | Plan restrictions on transfers: Moving your group RRSP to another provider might temporarily halt employer matching, and some plans charge transfer fees |
| Flexibility at retirement: Funds can be taken as cash, converted to a RRIF, or used to buy annuities for flexible income options | Early Withdrawals (before retirement): Early withdrawals are subject to withholding taxes, diminish your overall retirement savings, and forfeit the benefit of continued tax-deferred investment growth on the withdrawn amount |
Is Manulife Group RRSP right for you?
Manulife Group RRSPs offer significant advantages for many employers. They help improve competitive positioning since Group RRSPs have become an expected benefit in today’s job market. Manulife’s platform also makes managing retirement benefits much easier by reducing administrative burdens.
If you want to understand how a Manulife Group RRSP could work for your organization, schedule a free, no-obligation call with a licensed advisor at PolicyAdvisor today!
Frequently Asked Questions
What is the Manulife Group RRSP contact number or support email?
For help with your Manulife Group RRSP, you can call their toll-free support line at 1-888-727-7766 (available across Canada). Alternatively, you can visit the official Manulife support page on their website to find additional contact options and resources.
How do I log in to my Manulife Financial Group RRSP account?
To access your account, go to manulife.ca, click on the “Sign In” button, then select “Group Retirement.” Use your Manulife ID credentials to log in securely and manage your Group RRSP online.
Can I transfer my group RRSP from Manulife to another institution?
Yes, you can transfer your Group RRSP funds to a personal RRSP or to another employer’s group plan if their plan accepts transfers. Keep in mind that some plans may charge transfer fees, and employer matching contributions might be affected during the transfer process.
What happens to my Manulife Group RRSP if I leave my job?
When you leave your employer, you typically have several options: you can keep your funds in the existing Manulife Group RRSP (if your former employer allows it), transfer the balance to a personal RRSP, or move it to a new employer’s retirement plan. It’s best to contact Manulife directly to understand your options and any applicable timelines or fees.
Is Manulife Group RRSP a good choice for retirement savings in Canada?
Yes, Manulife Group RRSPs are a strong option for many employees, especially those who want to take advantage of employer matching contributions, convenient payroll deductions, and access to a variety of low-fee investment options. The plan’s features can help build retirement savings efficiently over time.
This comprehensive review of the Manulife FutureStep® Group RRSP explains why it’s a top choice for Canadian businesses looking to support employee retirement savings. Designed for organizations of all sizes, the plan offers easy online setup, a broad selection of investment options, low management fees, and strong support tools for both employers and employees. With immediate tax benefits and flexible contribution options, it’s a strategic addition to any benefits package. We break down how it works, how to enroll, the pros and cons, and what happens when employees leave their job.
Canada Revenue Agency. Tax rates on RRSP withdrawals. Government of Canada.
