Does your spouse have access to a pension?
If you have access to a pension plan (like the Local Authorities Pension Plan -- LAPP), and your spouse doesn't, you may want to look at a Spousal RRSP through the ASBE Group RRSP -- the only Group RRSP built specifically for Non-Teaching Alberta School Board Employees. The reasoning is pretty simple -- generally speaking, if you have one half of a couple at retirement who has a high income (pension plus RRSP), and one who has a very low income (no pension, limited RRSP), you'll generally pay a lot more tax than two people with about the same level of income.
As part of the Alberta School Board Employees Group RRSP, the Spousal RRSP works like this:
- You (the School Board Employee) pays into the Spousal RRSP -- you get the tax deduction
- Your spouse is the owner of the RRSP
- Your spouse takes it out at retirement
That way you're not taking it out on top of your pension (and bumping up into a higher tax bracket as a result).
Just like the ASBE Group RRSP, the Spousal RRSP has access to the same incredible list of investment options, has no transaction fees, and can be deducted from your paycheque by your payroll department pre-tax. And yes, your spouse can still contribute to the plan on their own too!
Contact us today to find out how the Spousal RRSP for (Non-Teaching) Alberta School Board Employees can help your family prepare for the future!