# My overview - retirement plan. How much do I need to save? can I xfer RRSP to spouse?



## hystat (Jun 18, 2010)

I'm 47. I have a recent common law spouse (3 years living together now). I have no kids. Her son is 25 and self sufficient. 

I (we) have a house worth $400K (no mortgage), I have $150K in RRSP's.
I also have a DB pension and it's online calculator says I'll get $41K/year if I retire at 60, and $55k if I retire at 65.
I'll probably stick it out to 65 but who knows... it's a job I like a lot. 

My* first question*: My wife has no rrsp's or retirement savings of any kind. Is there any way I can transfer any of my existing rrsp's to her?

My *second question* and forgive me for being vague.... what should I be doing? I'm maxing contributions to my pension, but I haven't been putting any money into RRSP's on a regular basis lately. I guess putting some into a spousal each month is a no-brainer. 

It's weird- I have no idea what I want to do in retirement. I guess just what I'm doing now... internet message boards and playing my guitar, tinkering on mechanical things..boat motors etc. I don't really like traveling outside of Canada. My wife likes to travel, so I will probably come around because she makes it more fun. I would rather live well now than save for some "dream" on a bank's webpage. I'm having a hard time picturing retirement for me.


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## My Own Advisor (Sep 24, 2012)

Sounds like you're in decent shape...

I agree with the mantra of living for today, but saving for the future is also prudent.

Regarding your first question - no, my understanding is you cannot just transfer your existing RRSP to hers.
"Funds in an RRSP cannot be moved or transferred to an RRSP that does not have the same annuitant as the RRSP where the money is coming from. For example, you cannot transfer funds in your RRSP to a spousal or common-law partner RRSP."

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/cntrbtng/spsl-eng.html

As for your second question, it is rather vague and unfortunately can't help you much there 

Regarding finances, as long as you are working FT, definitely keep those pension contributions maxed. Earning, $41K/year @ 60 or more @ 65 is a healthy pension, especially if it is indexed for inflationary purposes.

Not knowing how you've structured other accounts, I suppose the only thing I would add is maximizing both TFSAs every year if you can. $11,000 worth of contribution room in a matter of hours for 2013. That contribution room is a gift to all of us and I think everyone should try and max it out if they can. 

You can take the tax-free income earned with investments inside the TFSA every year and use the monies to travel with your wife. Beyond doing whatever you want, whenever you want, sounds like an awesome retirement to me.

Happy Investing in 2013.


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## Rusty O'Toole (Feb 1, 2012)

As your needs are modest, $3,000,000 in GICs should see you through, as long as you don't live long enough to see the interest eroded away by inflation.

$3,000,000 @ 2% will give you $60,000 a year. Expect the buying power to diminish by half every 10 years. As long as you don't live more than 20 years after you retire, you should be fine.


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## steve41 (Apr 18, 2009)

Rusty O'Toole said:


> $3,000,000 @ 2% will give you $60,000 a year. Expect the buying power to diminish by half every 10 years. As long as you don't live more than 20 years after you retire, you should be fine.


$3Million will get you $85,000 adjusted for inflation..... better than fine.


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## hystat (Jun 18, 2010)

I'll have 3 million when I'm about 113 years old, so that would end the retirement discussion...lol


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## rikk (May 28, 2012)

hystat said:


> I'm 47. I have a recent common law spouse (3 years living together now). I have no kids. Her son is 25 and self sufficient. I (we) have a house worth $400K (no mortgage), I have $150K in RRSP's.
> I also have a DB pension and it's online calculator says I'll get $41K/year if I retire at 60, and $55k if I retire at 65.
> I'll probably stick it out to 65 but who knows... it's a job I like a lot.


Sounds familiar ... I considered retiring early on about a $40K pension ... house paid for, no debt ... I tracked my expenses for a year or so and came up without about $20K/year for myself and I am not a big spender. Assuming my wife's expenses to be about the same, I decided a $40K pension for two doable but cutting it a bit thin. 

I recommend tracking your expenses for a year or so ... in the mean time, carry on (is what I did) :encouragement:


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## InvestingForMe (Sep 6, 2012)

Hi, hystat
I found the attached article of interest "When Can We Retire?", by Fred Vettese, Chief Actuary, Morneau Shepell.

http://www.morneaushepell.com/_private/getpdffile.asp?docId=1718

Regards


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## olivaw (Nov 21, 2010)

Canadian Business says... 



> [May 8, 2012]..it’s fair to estimate that a typical middle-class retirement costs roughly $40,000 to $60,000 per couple per year, while an “upper middle-class” retirement costs in the range of $60,000 to $70,000 per couple per year. These numbers assume you own a paid-for home.


http://www.canadianbusiness.com/investing/how-much-do-you-need-to-retire-well/


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## Cal (Jun 17, 2009)

I would second the suggestion above to utilize your TFSA's to shelter some investments. You are fortunate in that you have a decent pension comin gto you, and you like your job and enjoy working. I would use the TFSA's to shelter a little more savings.

But I would also figure out what you want to do in retirement, and a guess as to how much income you would want in retirement.

All the best.


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## OhGreatGuru (May 24, 2009)

hystat said:


> ...
> 
> I guess putting some into a spousal each month is a no-brainer.
> .


Too many questions in one post. But assuming this is a stable relationship then I agree the spousal RRSP seems to be a no-brainer, assuming your spouse agrees that the purpose is to save for retirement.


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## OhGreatGuru (May 24, 2009)

hystat said:


> ...
> My* first question*: My wife has no rrsp's or retirement savings of any kind. Is there any way I can transfer any of my existing rrsp's to her?


Actually you can, but unfortunately you have to die first. :rolleyes2:
Your spouse should be a qualified successor annuitant/account holder to your RRSP - check with your financial institution to make sure she is properly identified as such.


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## Spudd (Oct 11, 2011)

OhGreatGuru said:


> Too many questions in one post. But assuming this is a stable relationship then I agree the spousal RRSP seems to be a no-brainer, assuming your spouse agrees that the purpose is to save for retirement.


The stable relationship part doesn't even matter. I was reluctant for years to contribute to a spousal RRSP just in case... but then I researched and you have to split the entire family assets 50/50 when you divorce, so it doesn't matter whether I put the money in my own RRSP or my spouse's.


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## MoneyGal (Apr 24, 2009)

Spudd said:


> The stable relationship part doesn't even matter. I was reluctant for years to contribute to a spousal RRSP just in case... but then I researched and you have to split the entire family assets 50/50 when you divorce, so it doesn't matter whether I put the money in my own RRSP or my spouse's.


Just the assets you acquire during the marriage, with the exception of the matrimonial home.


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## Spudd (Oct 11, 2011)

True. But when we got married neither of us had any assets.


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## Soils4Peace (Mar 14, 2010)

At age 65 you will be able to split qualified pension income 50:50. This includes RRIFs. Spousal RRSP is still a good idea though, because it adds flexibility.


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