Save for post-secondary education costs.
Many Canadians think opening an RESP is more complicated than coordinating after-school activities. But with Canada Life, you can start a plan online between periods of a hockey game.
How does it work?
A sponsor just needs to add the option to their group benefits or retirement and savings plan so their members can get started. That’s right, even if a sponsor isn’t a group retirement and savings (GRS) client, they can add this investment product to their group plan.
This RESP from Canada Life is for members of a sponsored group plan, but don’t think of it as a group RESP. Group RESPs are sold by a scholarship dealer and usually come with a list of rules and restrictions for contributions and withdrawals.
What can members do with this RESP?
With an RESP members can:
- Set up pre-authorized contributions or use online banking to add to their savings
- Access federal government grants that kick in $1 for every $5 put in (contributing up to $500 a year and $7,200 total per student), with some provinces offering their own grants
- Open an individual or family RESP to meet their specific needs
- Transfer in existing RESPs from other financial institutions
When the time comes, it's easy to withdraw the money for students.
What are the product features?
The product is comparable to RESPs from other financial institutions, but because the RESP is a sponsored savings plan, fees are generally lower so members could save more.
There’s lots of flexibility to the plan. Qualifying members who are a parent, grandparent, godparent, uncle/aunt can open an RESP. Like with other RESPs, members can open an individual plan, a family plan or one of each. They can also add a joint subscriber.
Online enrolment lets members open an RESP in minutes and apply for government grants and bonds with a single tap or click. They can even transfer in an RESP from another financial institution.
