Great-West Life unveils no-fee spending account

by Leo Almazora12 Nov 2019

Great West Life has announced the enhancement of select group retirement savings plans with the addition of KOHO’s no-fee, full-service spending account to select group retirement savings plans.

Aside from a prepaid, reloadable VISA 0.5% cashback card, KOHO accounts are paired with an integrated mobile app that gives users real-time insights into their spending habits to encourage real behavioural changes. According to KOHO, the average user reduces their spending by 15% within the first three weeks of using the app and card, resulting in savings of nearly $500, which Great West Life anticipates for its own members with the account.

“We know saving for retirement is tough for many people and we want to help Canadians find new ways to achieve this goal," said Ryan Weiss, Vice-President, Group Customer Product & Experience, Great-West Life.

“What's really unique about our collaboration with KOHO is that members using the prepaid Visa spending card will be able to sweep their 0.5% cashback rewards into their employer-sponsored retirement savings account,” Weiss said. “They can also choose to round-up every purchase to the next dollar and save the difference. It's a great way to make saving for retirement an everyday event.”

“We were pleased to work with Great-West Life to bring this unique solution to the Canadian group retirement market,” said Ryan Tevel, Director of Partnerships at KOHO. “Plan sponsors who add KOHO to their Great-West Life retirement savings plans will be able to offer their members access to cash flow management tools to support their financial wellness in the short term, while also helping them to boost their longer-term savings for retirement.”