|Spousal RRSPs make a lot of sense if there will be a significant difference between you and your spouse’s income in retirement. Here’s why:
How a Spousal RRSP works
With a Spousal RRSP, the spouse who anticipates a higher retirement income uses his or her RRSP contribution room to make a contribution for the spouse with the lower expected retirement income. A Spousal RRSP is just like a regular RRSP except:
As with an RRSP, your contributions can’t exceed your personal RRSP contribution limit. You can use your RRSP contribution room to make a contribution to a Spousal RRSP, your own RRSP or split your contribution between the two plans.
A Spousal RRSP is an ideal way to make sure you and your partner have more equal incomes in retirement, lowering overall income tax and possibly retaining more of government benefits.
Contact me to make your RRSP contribution, or to discuss how we can help you achieve your retirement goals.