RRSP Matching

[Scout]

I've noticed that RRSP matching has been missing from conversations about the compensation structures at different firms. This form of compensation is so valuable so I'm hoping we can all shed light on our experiences. To my knowledge, Lenczner provides matching up to 5% of salary. Any idea what the big firms or other lit boutiques are doing?

[BlockedQuebecois]

My understanding is RRSP matching is quite a rare benefit at big firms. Certainly, it was not a benefit at my old firm nor was it a benefit at a couple of litigation boutiques I considered offers from.

It makes sense because RRSP matching is only a benefit to associates. 

[Pantalaimon]

4 hours ago, BlockedQuebecois said:

My understanding is RRSP matching is quite a rare benefit at big firms. Certainly, it was not a benefit at my old firm nor was it a benefit at a couple of litigation boutiques I considered offers from.

It makes sense because RRSP matching is only a benefit to associates. 

Old firm! Did you end up doing your own thing?

[BlockedQuebecois]

9 minutes ago, Pantalaimon said:

Old firm! Did you end up doing your own thing?

Finally accepted that job offer from Dentons 

[Jaggers]

I know I have in the past said I would not hire your firm, but that's changed. I will send some mandates to Dentons now!

[Pantalaimon]

What's the saying? There's no such thing as bad publicity?

[Jaggers]

FMC actually had a decent employment law group, which I got an offer from and thought seriously of accepting. But I think most of them have left.

[Fiona Apple]

I've heard another Toronto lit boutique (which I refer to in my head as Lenczner lite) also does RRSP matching. Seems very uncommon/unheard of at the bigger firms, although I may be wrong. 

[Jaggers]

Seems unlikely, when your compensation model is a very public top line matching of all of your competitors, that you would voluntarily add on a hidden 5%.

[Hitman9172]

The expectation is that you'll make Partnor and get rich enough to pay for your own retirement.

[Rashabon]

You put your bonus into your RRSP.

[easttowest]

25 minutes ago, Rashabon said:

You put your bonus into your RRSP.

Isn’t there a tax-deferred way to do this? 

In any event, my firm doesn’t match for associates and nor do any of the firms in my network. 

[Cool_name]

30 minutes ago, easttowest said:

Isn’t there a tax-deferred way to do this? 

In any event, my firm doesn’t match for associates and nor do any of the firms in my network. 

Yes, you just get it paid directly to your rrsp. 
 

You don’t need a match for this. 
 

You should consider rrsp vs tfsa though depending on your income bracket. 
 

I piled into rrsp initially though, to take advantage of the home buyers plan (effectively lets you make a down payment with pre-tax dollars). You need to pay the money back post tax, but it will get you there sooner.

[Orbis]

Lawyers in private practice are generally on their own when it comes to saving for retirement. This feeds into my suspicion of why some lawyers ostensibly refuse to retire but I digress.

[Vizslaw]

2 minutes ago, Orbis said:

Lawyers in private practice are generally on their own when it comes to saving for retirement. This feeds into my suspicion of why some lawyers ostensibly refuse to retire but I digress.

That's a bingo.

[tiktok]

Hello, 

Do the big law firms not offer any type of pension benefits at all? I am considering whether I should seek a job with the federal government or a big law firm for tax litigation and one of my main concerns is pension benefits. What's attractive about the federal government is their defined-benefit pension plan, but the starting salary is also 85k... I am bit bummed that in private practice you're expected to handle your pension alone

Edited November 26, 2021 by tiktok

[easttowest]

4 minutes ago, tiktok said:

Hello, 

Do the big law firms not offer any type of pension benefits at all? I am considering whether I should seek a job with the federal government or a big law firm for tax litigation and one of my main concerns is pension benefits. What's attractive about the federal government is their defined-benefit pension plan, but the starting salary is also 85k... I am bit bummed that in private practice you're expected to handle your pension alone

None that I’ve seen. Most associates are gone within a few years so I’m not sure what the incentive would be. 

A nice pension is not going to keep you grinding over the decades. That’s what partnership is for. 

[Jaggers]

Your pension is part of your salary. You save it yourself.

The reason that the government pays a lot less for the same work, but provides a pension, is because the pension is the difference.

[Rashabon]

If you make it to partnership and to your 60s there is a pension at some firms but that's about it. Otherwise you make a lot more than any other lawyer job so you can save for your own retirement. I've maxed out my RRSP every year.