A Spousal RRSP is a type of Registered Retirement Savings Plan designed to help families build retirement savings together while also supporting long-term tax planning strategies. Instead of contributing to your own RRSP, you contribute to an RRSP in your spouse’s or common-law partner’s name.
You receive the tax deduction, while the account is owned by your spouse and taxed in their hands at withdrawal, ideally at a lower tax rate. This approach can help reduce your combined household taxes during retirement.
In summary, a Spousal RRSP can be part of a tailored strategy for long-term tax reduction and equitable retirement income distribution between partners.
By contributing strategically, you may lower total household taxes in retirement while maximizing the benefits of RRSP savings as a family.