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Spousal RRSPs

Learn how spousal RRSPs support tax-efficient retirement planning, balance income between spouses, and how Optimize helps you integrate them into your broader retirement strategy

Getting Started with Spousal RRSP Planning

When planning for retirement, many couples focus on growing their combined savings. But without considering how income will be distributed in retirement, one spouse may face higher taxes while the other draws less. This is where spousal RRSPs come into play.

At Optimize, we help you understand how spousal RRSPs can be used as a powerful tool to balance retirement income, reduce household taxes, and support long-term financial goals. Whether you’re considering starting a spousal RRSP or optimizing an existing one, having a clear strategy ensures both spouses benefit.

What Is a Spousal RRSP?

A spousal RRSP is a registered retirement account where one spouse contributes to an RRSP in the other spouse’s name. The contributing spouse receives the tax deduction, while the receiving spouse owns the account and will eventually draw income from it.

This strategy is designed to facilitate income splitting in retirement, helping couples reduce overall tax liability by shifting income to the lower-earning spouse in future years.

At Optimize, we use spousal RRSPs as a strategic planning tool, balancing contribution benefits today with income and tax planning in retirement.

Why Does It Matter?

Without proactive income-splitting strategies:

  • One spouse could face significantly higher taxes in retirement.

  • Couples may miss opportunities to reduce their overall household tax burden.

  • Retirement income may be unevenly distributed, impacting cash flow flexibility.

Spousal RRSPs provide a structured, CRA-approved way to balance income between spouses, reducing tax drag and enhancing retirement income efficiency.

At Optimize, we ensure spousal RRSPs are considered within your entire retirement income strategy—not just as a standalone account.

The Benefits of Spousal RRSPs for You

Spousal RRSPs offer more than immediate tax deductions. When used strategically, they enhance retirement income planning with clear benefits:

  • Income-splitting opportunities that reduce household taxes in retirement.

  • Flexibility to shift retirement income to the lower-earning spouse.

  • Tax deductions today, while planning for future tax efficiency.

  • Improved cash flow balance between spouses in retirement.

  • Ongoing support from Optimize, ensuring your spousal RRSP strategy evolves with your financial goals and circumstances.

Understanding Spousal RRSP Planning

Spousal RRSPs are a strategic way to manage taxes and income as a couple. At Optimize, we guide you through how to use them effectively to support long-term planning. The articles below break down each topic clearly: