Why do you require my Social Insurance Number when I join?

The Canada Revenue Agency (CRA) requires this information to set up the TFSA and RRSP and to report on TFSA and RRSP contributions and withdrawals, as well as RRIF payments. This information is kept strictly confidential and not shared with any person not associated with the plan setup and administration.

What will I receive from the Common Good Plan when I retire?

The plan will provide you with planning tools to assist you with developing a retirement income plan – converting savings to income in retirement and integrating various income sources, such as government benefits.

You’ll be able to access your Common Good Plan retirement income in a number of different ways. They include setting up a regular withdrawal based on a percentage of your assets and/or a fixed pension-like payment. You will also have the option to withdraw funds in a lump sum or through a transfer to another TFSA, RRSP, or RRIF.

How is the money I contribute to the Common Good Plan invested?

You can select from one of a series of BlackRock target date funds, which provide a mix of equities, fixed income, and real assets. The fund is matched to your expected retirement date, and the asset mix is automatically adjusted to become more conservative as you get closer to that date. Target date funds provide an investment solution that can reduce the complexity and stress of investing over time.

If you do not select a fund, your contributions will be invested in a default fund that is appropriate given the year you expect to retire under the plan. The default minimizes the risk of investment losses as you get closer to needing your retirement income.

Can you help me determine how much income I will need in retirement?

Common Good uses your current income to determine a target retirement income that will allow you to maintain your current standard of living as you enter retirement. We will help you understand how multiple sources of retirement income, including other savings, and eligibility for government benefits will help you reach that target. We then suggest a personalized savings plan to get you started today and stay on track over time (auto-escalation feature) in order to meet your retirement goals.

What are the fees?

As an eligible employee of a participating employer, you pay a fee of 0.6% of assets. For comparison, the average mutual fund fee in Canada is over three times higher at more than 2% per year. This low fee for Common Good can make a dramatic difference in how much money you save for retirement.

These are all-in fees and cover: 

  • Investment management 
  • Plan administration
  • Custodial fees and other costs associated with running the plan

Your employer, as the plan sponsor, pays a fee of $10/month for each employee who is enrolled in the plan. This fee covers: 

  • Common Wealth’s digital retirement planning technology
  • Employer service (e.g., onboarding, payroll deduction)
  • Member service (e.g., inquiries, one-on-one member support)
  • Education for you and your employees

If you join as an individual or leave your employer but remain in the plan, you pay a fee of 0.7% of assets and a $3/month membership fee.

Transaction and processing fees of $75 per transaction are charged for fund withdrawals or transfers out, and death and marriage breakdown processing. For non-sufficient funds (NSF) transactions, the fee is $40. 

We don’t charge any fees to transfer existing RRSP or TFSA assets into the Common Good Plan, although the financial institution a member is transferring out from may have fees associated with the transfer of those funds.

What is the purpose of the Common Good Plan?

The Common Good Plan was established to enhance Canadians’ financial security and designed to help make saving for retirement easier and more affordable through a high-quality, nationally portable arrangement.

How is this plan different from other options in the market?

The Common Good Plan is a portable savings program designed to make retirement easier and more affordable for Canadians, regardless of their age. By combining group purchasing power, digital technology, and world-class retirement research, the plan has the potential to deliver up to 3x the value for money of a typical individual approach to saving for retirement. 

While most investment options on the market focus on accumulation of assets, the approach for the Common Good Plan is based on monthly retirement income. The plan does all of this with lower fees and a legal duty to administer and manage the plan in the plan members’ best interests.

Who can join the Common Good Plan?

This plan is meant for all!

There is no maximum age limit to join the Common Good Plan, although you cannot contribute to a TFSA if you are under 18 years old. You can contribute to an RRSP as long as you have available contribution deduction room or until December 31st of the year you turn age 71. 

Members must be Canadian residents for tax purposes in order to join the plan.