Less than a third of Canadians (28%) have discussed retirement before marriage, finds a BMO study.
“You could be spending 30 years with your partner in retirement, so it’s important that you determine early on if you’re on the same page,” says Chris Buttigieg, senior manager, Wealth Planning Strategy, BMO Financial Group.
Read: Ask love interest about finances
This is especially important, given that 20% of couples say having different views on retirement could be grounds for divorce.
Most couples don’t discuss: how much they’ve saved for retirement; what their ideal retirement lifestyle looks like; where to live during retirement; whether to sell the family home/downsize.
Read: Protect clients before a third marriage
And Canadian couples believe they’ll need about $1 million to fund their retirements.
BMO suggests investing in spousal RRSPs to help save money. A tool for married or common-law partners, they can help defer taxes now, as well as reduce them at retirement. If you and your partner are in different income brackets, retirement taxes may be reduced because the couple is withdrawing the same amount of money from two smaller incomes rather than from one large one. Also, the partner making the RRSP contribution benefits from the current tax deduction.