Potential VRSP clients : WHO are they and WHERE are they?
Thursday, April 23, 2015
Voluntary retirement savings plan (VRSP). You’ve no doubt heard about it, you know that it’s a great business opportunity, but you’re still not ready to jump in or you don't know where to start. Here are some tips to help you.
First, remember that the VRSP market is vast: More than 90,000 Quebec companies, mainly small and medium-sized enterprises (SME), will soon be required to set up a VRSP or other group retirement plan. This is an unprecedented opportunity for you to contact business owners and offer your services.
Across Quebec
Small and medium-sized enterprises are not only found in major urban areas. About one third of SMEs are in the Montreal and Quebec City regions, while the remaining two thirds are spread across Quebec, even in the most remote areas. Regardless of the city or region where you work, there are no doubt SMEs that are subject to the legislative requirement to set up a VRSP.
We advise you to focus your efforts on businesses with 50 employees or less. These are the majority of SMEs that do not have a retirement plan.
And maybe even closer than you think!
You should know that even if a business already has a retirement plan for its employees, it may still be subject to the VRSP Act and, as a result, must make certain changes to its existing plan in order to comply. We therefore advise you to go through your existing clients to make sure they are 100% compliant with the new law. Be the one who will help them through the process…before one of your competitors does!
According to a survey of the Canadian Federation of Independent Business (CFIB)1, only 28% of Quebec SMEs have a savings and retirement plan. Of this number, only 13% offer a retirement plan to employees and managers. Thus, the VRSP Act requires businesses to offer a retirement plan to all employeesand not only to certain categories of employees.
Prospection tools to assist you
On iapension.com, you will find a wealth of documents and tools, including prospection letters, brochures and PowerPoint presentation, to help you in your prospection.
Potential VRSP clients: they’re everywhere and they’re waiting for you!
Good luck in your sales approach!
1Canadian Federation of Independent Business, “Pour des RVER adaptés aux besoins des PME”, August 2013 (French only).