Nest Wealth Asset Management Inc. is launching a digital group registered retirement savings plan in an effort to make it easier for small- and medium-sized businesses to provide retirement savings to employees.

The plan is free for employers to use and features digital enrolment for employees. It also allows employers to monitor their plans online and administer options such as contributions and matching. In addition, fees for assets administered through the plan are less than one per cent.

Read: Total RRSP contributions rise as number of contributors declines slightly

Prior to the launch, 200 Canadian companies signed up for the service, according to Nest Wealth. “Canada is a country that’s built on small- and medium-sized businesses, and yet the very people that drive that part of the economy forward have been left behind when it comes to being provided with solutions that help them save and retire,” says Randy Cass, founder and chief executive officer of Nest Wealth.

For smaller businesses, putting in the work to provide a retirement savings plan to employees often isn’t an option, says Cass. “There was no accounting for how much work it was to stay on top of these programs . . .. There are some businesses that might not have a head of HR or might not have someone who has what they need to be on top of this like a large company would.” 

In creating the program, Nest Wealth teamed up with Vanguard Group Inc., Morneau Shepell Ltd. and Canadian Western Trust. “We believe in partnering with those that have deep, deep experience and credibility in the areas that we’re trying to bring to market,” says Cass. Canadian Western Trust will hold the plans’ assets, Vanguard will create the investment products and Morneau Shepell will be responsible for the relevant record keeping, he says.

Read: Canadians estimate $756K will provide a comfortable retirement

The platform is easy to use because it’s digital, says Cass, noting employers can sign up and easily move through the necessary decisions, such as whether to match contributions and invite employees to participate. “They can have it done that day.” 

While the group RRSP is a digital product, Cass notes that Nest Wealth recognizes people sometimes want to talk to a person and have their questions answered immediately. As such, the company offers bilingual customer service and will be available to discuss the needs of employees who have a high probability of being novice investors, he says.

Read: Plan sponsors favouring group RRSPs, DPSPs over DC plans

Copyright © 2020 Transcontinental Media G.P. Originally published on

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