Planning Your Retirement

For you and your spouse, retirement will probably be a time for partaking in your shared interests. To do so, take advantage of all the possibilities available to you.

Take advantage of a spousal RRSP

Under the spousal RRSP, either of the spouses can contribute amounts on behalf of the other. The contributing spouse may deduct the contribution from his or her income. However, the payments will eventually be withdrawn by the spouse on whose behalf the spousal RRSP was established.

If your spouse does not have any income from employment or if your spouse’s income is lower than yours, your contribution may result in a more advantageous tax deduction. When the funds are withdrawn, income tax will be deducted from your spouse’s income, but since that income will be lower than yours, the taxation rate will be lower, too.

Make your spouse the beneficiary of your group retirement plan

If you are a member of a group retirement plan, consider making your spouse your beneficiary. See your plan administrator to have the necessary changes made to your contract.

Plan Your Retirement today.