Financial stress is a growing concern for Canadian employees, with 65% reporting that they are worried about their finances. This stress isn’t just a personal issue—it spills over into the workplace, affecting productivity and overall well-being. In fact, 27% of employees say their financial concerns impact their performance at work.

For employers looking to support their workforce, group savings plans offer a meaningful solution. A recent survey by Wealthsimple for Business highlights that 91% of employees believe financial benefits, such as retirement savings plans, influence their commitment to their employer. This suggests that offering strong group savings options isn’t just a perk—it’s a powerful way to attract and retain talent.

The Importance of Group Savings Plans

Providing employees with structured savings opportunities can alleviate financial stress and improve workplace satisfaction. Some key options include:

1. Group Registered Retirement Savings Plans (GRRSPs)

A significant portion of employees recognize the value of employer contributions to their retirement plans. With 38% of employees valuing large employer contributions and 28% interested in contributing to a GRRSP, these plans remain a crucial tool in long-term financial security.

2. Group Tax-Free Savings Accounts (GTFSA)

With 23% of employees expressing interest in group TFSAs, offering this benefit allows employees to save tax-free for both short- and long-term goals. Whether it’s an emergency fund or future investment, TFSAs provide flexibility that traditional retirement plans may not.

3. Group First Home Savings Accounts (GFHSAs)

With housing affordability becoming an increasing challenge, 26% of Canadian employees—rising to 35% among Generation Z—are prioritizing saving for a home over retirement. A Group First Home Savings Account (GFHSA) is an innovative way for employers to support this goal.

GFHSAs offer tax-free growth and the ability to contribute up to $8,000 annually, up to a lifetime maximum of $40,000. Employer contributions to a GFHSA provide a direct way to help employees achieve homeownership faster while offering a valuable financial benefit.

Meeting Employees Where They Are

Interestingly, while homeownership is a priority for many employees, a portion (17% overall and 9% of Gen Z) are focusing on saving for early retirement. This highlights the need for flexible benefits that accommodate diverse financial goals. A well-structured group savings plan should allow employees to direct employer contributions toward the savings vehicle that best aligns with their aspirations—whether it’s a home, traditional retirement, or an emergency fund.

Why Employers Should Act Now

Given the strong link between financial security and employee commitment, employers who invest in group savings plans can expect improved retention, higher job satisfaction, and increased productivity. By offering GRRSPs, GTFSA, and GFHSAs, businesses demonstrate a commitment to their employees’ financial well-being—helping them feel supported both at work and in their personal lives.

Financial stress isn’t going away, but employers have the opportunity to ease the burden. Implementing group savings plans is more than just a benefit—it’s an investment in a happier, healthier, and more productive workforce.