A surprising 31% of Canadians who are married or common law have not engaged in a detailed discussion with their partner about their retirement plans, including the lifestyle they want to lead and the best way to save for it, according to a survey released Monday by Bank of Montreal

The study, conducted by Leger Marketing, also highlights how 60% of married and common-law couples are not taking advantage of spousal RRSPs.

The bank chose Valentine’s Day to remind Canadian couples to discuss their financial future to ensure both partners are comfortable with retirement plans, and suggested the holiday is a perfect time to make a spousal RRSP contribution.

“It may not sound as romantic as a candle-lit dinner, but having a detailed discussion about your financial future can pay off in the long run,” says Caroline Dabu, vice president, retirement & financial planning strategy, BMO Financial Group.

“Spousal RRSPs are an optimal investment tool for married or common-law partners because they can help defer taxes now, as well as reduce them at retirement,” explains Dabu.

“If you and your spouse are in different income brackets, your retirement taxes may be reduced because you are withdrawing the same amount of income from two smaller incomes rather than from one large one. Furthermore, the partner making the RRSP contribution benefits from the current tax deduction.”

The survey also found:

> almost half (44%) of Canadians who are married or common-law are unprepared for the possibility of being alone in their retirement and do not have a plan in place that will allow them to be financially stable in the event they will be alone;

> men are more likely than women to say they have a plan in place in the event they are alone in retirement (60% versus 48% respectively); and

> those without children in the household are more likely than those with children in the household to have had a discussion about their retirement plans.

The online survey was conducted by Leger Marketing from January 31 to February 2, with 1,510 Canadian adults.

IE