VRSP – Voluntary retirement savings plan

It’s a plan specifically designed for SMEs that have not already implemented a group retirement savings plan for their workplace.

Unlike an RRSP, the VRSP includes savings from multiple employees, which allows economies of scale on management fees.

In Quebec, an employer is required to establish a VRSP if it is not already offering a retirement savings plan at work and has a defined number of eligible employees.

Advantages of a VRSP

If you’re self-employed or just someone who wants to save for retirement, a VRSP may be a wise choice. It allows you to:

  • Have access to a private, simple and flexible group savings plan that adapts to your situation
  • Grow your savings on a tax-sheltered basis while deducting your contributions from your taxable income
  • Change the amount of your contributions at your convenience
  • Withdraw the accumulated value of your contributions at any time; however, you will be taxed on these withdrawals