.png)
These two benefits serve different employee needs, operate on different principles, and attract different segments of your workforce. Here’s how to think about both.
Block Rewards Research · blockrewards.com · 9 min read
|
60–70% of savers prefer liquidity over tax deferral in practice |
48% of employees say retirement savings are on track |
Both BSP and Group RRSP belong in a modern benefits stack |
The Question HR Leaders Are Starting to Ask
As the Bitcoin Savings Plan becomes more visible in the Canadian market, a common question is emerging in HR and benefits conversations: does this replace our group RRSP, or does it sit alongside it?
The answer is unambiguous: BSP and group RRSPs serve fundamentally different employee needs, attract different segments of the workforce, and operate on entirely different principles. They are not competitors. They are complements. The employers who understand this distinction will build the most complete and competitive benefits stack.
This article breaks down the differences, explains who each benefit serves best, and shows how to position both as part of a modern total rewards strategy.
The Core Difference: Tax-Deferred Retirement vs. Liquid Savings
A group RRSP is a tax-deferred savings vehicle designed for long-term retirement accumulation. Contributions reduce taxable income in the year they are made. Growth inside the RRSP is sheltered from tax until withdrawal. The structure is optimised for employees who are saving for retirement and are comfortable locking money away for decades.
The Bitcoin Savings Plan is a non-tax-deferred, liquid savings option. Contributions come from after-tax income (the Bitcoin is treated as employment income and taxed accordingly). The Bitcoin is the employee’s property immediately and can be withdrawn at any time. The structure is optimised for employees who want to build wealth outside of traditional retirement vehicles — with access and flexibility preserved.
|
BSP vs. Group RRSP — direct comparison |
|
|
Tax treatment |
BSP: Taxed as employment income at receipt. RRSP: Tax-deferred; contributions reduce taxable income. |
|
Liquidity |
BSP: Fully liquid. Employees can withdraw at any time. RRSP: Locked in until retirement (with penalties for early withdrawal). |
|
Asset class |
BSP: Bitcoin — a fixed-supply digital asset with global liquidity. RRSP: Mutual funds, ETFs, or other investment products. |
|
Employer exposure |
BSP: None. Employer pays in dollars. RRSP: None for standard plans; employer administers the program. |
|
Inflation hedge |
BSP: Bitcoin has a fixed supply of 21 million, providing a potential hedge against monetary inflation. RRSP: Depends on underlying investments. |
|
Employee age fit |
BSP: Appeals strongly to Millennials and Gen Z. RRSP: Appeals across all ages, particularly 35+. |
|
Participation |
BSP: Voluntary. RRSP: Voluntary, though often strongly encouraged. |
|
“60–70% of savers show a preference for liquidity over tax deferral in practice. This means a significant portion of your workforce may value BSP precisely because it doesn’t lock their money away.” — Block Rewards BSP Guide, 2026 |
Who Each Benefit Serves Best
Group RRSP is ideal for:
- Employees aged 35+ who are actively planning for retirement
- Employees who benefit most from reducing taxable income in higher earning years
- Employees who want a diverse, managed investment portfolio inside a tax-sheltered wrapper
- Employees who are comfortable with long time horizons and don’t need access to their savings
- Millennials and Gen Z employees who are sceptical of traditional financial institutions
- Employees who value flexibility and want to preserve access to their savings
- Employees who are already interested in Bitcoin and want a structured, employer-supported way to save in it
- Employees who want a savings option that isn’t correlated with traditional stock markets
- Employees who want to hedge against fiat currency inflation
BSP is ideal for:
Critically, these are often different employees in the same organisation. Your 45-year-old senior developer may max out their RRSP contribution. Your 27-year-old product designer may have zero RRSP contributions and a personal Bitcoin wallet. Both deserve a benefit designed for them.
The Case Against Choosing One or the Other
Some HR leaders, when first introduced to BSP, frame it as a choice: “We already have a group RRSP. Do we need this too?”
This framing misunderstands what each product does. Asking whether you need both a group RRSP and a BSP is like asking whether you need both health insurance and an EAP. They serve different needs, for different people, in different ways. Offering both doesn’t dilute either product — it strengthens your total rewards offering by serving a broader range of employee needs.
Research from Block Rewards shows that only 48% of employees say their retirement savings are on track. That means roughly half your workforce has a gap that the group RRSP — for whatever reason — isn’t filling. BSP gives those employees another path.
How to Position Both Products to Employees
The communication challenge with a dual RRSP/BSP offering is ensuring employees understand the difference and can make an informed choice. Block Rewards recommends this framework:
|
Suggested Communication Language "We offer two savings options through payroll: a group RRSP for tax-advantaged retirement savings, and a Bitcoin Savings Plan for employees who want to save in Bitcoin automatically. Both are voluntary. You can participate in one, both, or neither. Talk to HR if you have questions about which is right for you." |
This language is clear, non-prescriptive, and doesn’t position one benefit against the other. It treats employees as capable of making their own financial decisions — which is exactly the tone that resonates with the modern workforce.
The Employer Matching Question
One question that often comes up in the RRSP vs. BSP conversation is how employer matching works. Currently, many employers match RRSP contributions up to a percentage of salary. Some are now exploring whether to extend matching to BSP contributions.
Block Rewards supports employer matching on BSP contributions. The structure is the same as RRSP matching: the employer designates a match percentage, and Block Rewards handles the additional contribution alongside the employee’s deduction.
If you currently offer RRSP matching and want to explore extending it to BSP, Block Rewards can walk through the mechanics and cost implications. A modest BSP match — even 25% or 50% of the first 1-2% contributed — significantly amplifies the recruitment and retention impact of the benefit.
The Competitive Positioning Argument
There is a competitive argument for offering both that goes beyond what either product individually delivers.
Employers who offer a group RRSP and a BSP can credibly say: “We have modern savings options for employees at every stage of their financial life.” That is a positioning statement that most competitors cannot match right now. The RRSP demonstrates financial maturity and care for long-term retirement security. The BSP demonstrates awareness of how younger employees actually think about saving and wealth-building.
Together, they signal an employer that takes financial wellness seriously enough to offer more than one answer.
|
Add BSP alongside your existing RRSP — no changes required Block Rewards integrates with your current payroll in 1–2 days. blockrewards.com · info@blockrewards.com |
Sources
- Block Rewards BSP one-pager — 48% retirement savings on track statistic; 60–70% liquidity preference data
- Oobit, 2026 Crypto Payroll Report
- PwC, 2026 Employee Financial Wellness Survey
- Canada Revenue Agency — RRSP contribution and tax guidance
- Security.org, 2026 Cryptocurrency Adoption Report
Important: A Bitcoin Savings Plan is not a replacement for traditional retirement savings and is not insured by the CDIC or any government agency. Bitcoin is a volatile asset. Employers should consult legal counsel before implementing any digital asset program. © 2026 Block Rewards Inc. All rights reserved.