Do we need spousal RRSPs if our salaries are the same? + MORE Jul 29th

I don’t know what it is about our federal government but it seems that they really want to start giving money to seniors once they get within striking distance of age 65. A few columns back I described how Service Canada reached out to me in plenty of time to collect Old Age Security (OAS) benefits once I turn 65 next year.
Even before that column ran early in June, and seemingly quite independently of the OAS mailing, I received another Service Canada mailing, this one focused on the Canada Pension Plan or CPP. I found this curious since, unlike OAS, I could have applied for early CPP benefits five years ago but never received a pro-active mailing until now.
True, both letters originated with the Scarborough Regional office of Service Canada: OAS was dated April 18th and the CPP one April 26th, although neither referred to the other. As I related in the OAS piece, applying for OAS was a snap once I reached a live person on the phone: within minutes it was set up so deposits would automatically appear in my bank account, net of taxes, late in the month after I turn 65…

Q: I am married with a minor son. My wife and I have been successful saving and investing. Presently we have in excess of fifteen accounts. Mostly in equities and ETFs. These include RRSPs, TFSAs, RESPs, LIRAs, margin accounts, both USD and CAD.
I would appreciate your thoughts on diversification and winding down as we approach retirement.
—Jeff
A: Congratulations on your pending retirement, Jeff. Going to work and accumulating savings is the easy part. Figuring out what to do with a spare 40 hours per week and how to draw down on your nest egg is the hard part.

Would combining RRSP accounts save us money? »

First off, I would be inclined to do some consolidating. I’d like to hope you could reduce your fifteen accounts down to nine at most. I could see you each needing an RRSP, a TFSA and a LIRA, but you could get away with a single RESP and Canadian and U.S. dollar margin accounts. Perhaps you have group retirement accounts or Canadian and U.S. dollar registered accounts, but if it’s just a case of having two RRSPs in your name or multiple RESPs, for example, I’d start by combining like accounts…

Q: I have a question about whether my wife and I should consider using a spousal RRSP. I’m 32, self-employed, paying myself an $80,000 annual salary and have a personal RRSP of around $160,000. My wife is also 32 and she’s employed with a company that provides a defined benefit pension. She is making around $70,000 per year and has a personal RRSP of $60,000.
Considering our employment status and how our salary levels don’t differ too much, does it even make sense to have a spousal RRSP? Or should I just assume that pension income splitting will still be around by the time I retire?
—Vince
A: The purpose of a spousal RRSP is to try to keep the taxable income of two spouses similar in retirement. You benefit as a couple if you can equalize your investable assets and ultimately the amount of income received in later years. Based on your situation this income could come from various sources such as Registered Retirement Income Funds (RRIFs), a defined pension plan, Old Age Security, and Canada Pension Plan to name a few…