Retiring Couple at 70 in Saskatchewan with $1M Combined RRIFs: Spousal Rollover vs Pension Splitting Math (2026)
Key Takeaways
- 1Understanding retiring couple at 70 in saskatchewan with $1m combined rrifs: spousal rollover vs pension splitting math (2026) is crucial for financial success
- 2Professional guidance can save thousands in taxes and fees
- 3Early planning leads to better outcomes
- 4GTA residents have unique considerations for inheritance planning
- 5Taking action now prevents costly mistakes later
Quick Summary
This article covers 5 key points about key takeaways, providing essential insights for informed decision-making.
Quick Answer
A Saskatchewan couple both 70 with $1 million in combined RRIFs ($600K his, $400K hers) faces a quietly compounding income-tax problem if they don’t actively manage the asymmetry. His RRIF generates the larger mandatory minimum each year, pushing his personal income toward the OAS clawback threshold of $95,323 — while her smaller RRIF leaves her with unused tax-bracket headroom and unused OAS clawback room. The fix: file the T1032 pension income splitting election each year under ITA section 60.03, allocating up to 50% of his RRIF income to her tax return. The mechanics are simple — both spouses sign the election when filing their T1 returns, and Service Canada / CRA recalculates each spouse’s reported pension income accordingly. The effect on the Saskatchewan couple: at age 70 with combined CPP+OAS+RRIF income of approximately $98,000 (his $59,000 + her $39,000), the unsplit scenario leaves him just under the clawback threshold and her well under, with a combined effective rate of ~28%. Without splitting, by age 78 his portion crosses $95,323 (RRIF minimums climbing past 6.36%), triggering ~$3,500/year of OAS clawback for the rest of his life. With annual T1032 splitting, both spouses stay under $95,323 indefinitely — saving ~$3,500/year × 15 years = $52,500 of preserved OAS. Saskatchewan’s top combined marginal rate is 47.50% and probate is $7 per $1,000 flat from dollar one (no threshold) — meaningful at large estates but not a planning-changing factor for most couples.
Key Takeaways
- 1Federal pension income splitting under ITA s. 60.03, filed annually on form T1032, allows spouses or common-law partners to allocate up to 50% of eligible pension income from one spouse’s tax return to the other’s. Eligible pension income for spouses both 65+ includes RRIF income, LIF income, life annuity payments from registered plans, and DB pension income. CPP/QPP retirement pension is NOT eligible for T1032 splitting — it has its own mechanism via pension sharing (s. 65.1 CPP Act).
- 2For a SK couple at 70 with unequal RRIF balances, T1032 splitting equalizes the reported RRIF income across both spouses for tax purposes. The dollar movement on the T1 returns can save thousands in cumulative annual tax by (a) keeping both spouses under the OAS clawback threshold of $95,323, (b) dropping the higher-earning spouse from the 35% bracket to the 28% bracket on the shifted income, (c) lifting the lower-earning spouse from the 25% bracket to the 28% bracket on the received income — net savings on the bracket spread, plus the full clawback avoided.
- 3Saskatchewan’s top combined federal+provincial marginal rate is 47.50%, kicking in above approximately $253,000 of taxable income. SK’s middle brackets are gentler than Ontario’s or NS’s: 28% combined on $50K-$98K, 33-35% on $98K-$150K. For retirement RRIF income that mostly lands in the $50K-$100K range, SK retirees face roughly similar marginal rates to Alberta and BC at the same income.
- 4Saskatchewan’s probate fee is $7 per $1,000 of estate value, with no threshold and no maximum cap — meaning a $50K estate pays $350 of probate and a $5M estate pays $35,000. Compare to Ontario’s $0 on first $50K then $15/$1K (so $5M = $73,500), Alberta’s $525 max, Manitoba’s $0. SK’s flat-rate structure is moderate by Canadian standards but adds urgency to estate planning for couples with large RRIFs (RRIFs flow through estate to non-spouse beneficiaries; spousal rollover under ITA s. 146.3(6) avoids the income tax but the probate exposure may remain).
- 5For the scenario in this article — SK couple both 70, $600K + $400K RRIFs, full CPP+OAS, no DB pension, both healthy — the optimal sequence (T1032 splitting each year + spousal-rollover-on-death planning) saves approximately $52,500 in cumulative OAS clawback over the remaining 15-20 years of expected joint retirement, plus reduces probate exposure on the residual estate by approximately $7,000-$10,000 through named beneficiary planning.
Quick Summary
This article covers 5 key points about key takeaways, providing essential insights for informed decision-making.
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Book a free 15-min call →The Scenario: George and Helen, Both 70, Regina Cathedral
George and Helen retire in Regina's Cathedral neighbourhood at 70. Married 44 years, two grown kids in Saskatoon. George spent his career as an electrical engineer at SaskPower (peak salary $115K, on the contract-engineer track so no DB pension), accumulated $600,000 in his RRSP which he just converted to a RRIF this year. Helen ran a small interior design business out of their home for 28 years (peak income $55K), accumulated $400,000 in her RRIF. Combined $80,000 in TFSA, paid-off Cathedral bungalow worth ~$480K, $25K in non-registered cash bridge.
Both took CPP and OAS at 65 — both are receiving the maximums ($1,507.65/month CPP each in 2026, $742.31/month OAS each). Both healthy non-smokers, parents lived to mid-80s.
Their question, at the annual review with their Regina credit union: we just converted George's RRSP to RRIF and Helen converted hers two years ago — what do we do now to make this work for the next 20 years?
The Quiet Income-Tax Problem in Year 1
At age 70, George's RRIF generates a minimum withdrawal based on the CRA prescribed factor for his age (5.00% at age 70 if he uses his own age, or his own-age-based minimum at 71 is 5.28%; many institutions calculate from January 1 balance). On his $600K balance, that's roughly $30,000-$32,000 of mandatory taxable income annually. Combined with indexed CPP ($18,816/year at 70) and OAS ($9,261/year at 70), George's total income is approximately $58,000-$60,000.
Helen's smaller RRIF ($400K) generates approximately $20,000/year of mandatory income. Combined with her CPP+OAS of $28,077, her total income is approximately $48,000.
Joint income at 70: $108,000. Comfortable, well below any clawback. Both spouses in Saskatchewan's 28% combined marginal bracket. Total joint tax: roughly $19,600.
The problem isn't today — it's in 8 years. The RRIF prescribed factor climbs every year: 5.28% at 71, 5.82% at 75, 6.36% at 78, 6.82% at 80, 8.51% at 85. By the time George is 78, his RRIF minimum on a balance that's grown to ~$610K is approximately $38,800. Combined with indexed CPP+OAS at 78 (~$33,600), George's individual income is $72,400 — still under the OAS clawback threshold of $95,323. But by 85, the math has shifted: RRIF minimum 8.51% on ~$545K = $46,400, plus CPP+OAS ~$38,700 = $85,100. Still under. By 87, $89,100. Approaching.
When the asymmetry will matter
For this specific SK couple, the OAS clawback won't bind on a per-spouse basis until late 80s or 90s — neither spouse's individual RRIF is large enough to push them past $95,323 alone. The T1032 splitting savings here come mostly from marginal-rate arbitrage (one spouse's top dollar is in the 33% SK bracket while the other's top is in the 28% bracket) rather than from clawback avoidance. Annual savings: $400-$1,200/year for most years, accumulating to ~$18,000 over a 17-year joint retirement. Modest but free.
Calculator: Model each spouse's RRIF mandatory minimums
Use the RRIF calculator to project George's $600K balance forward and Helen's $400K balance forward through ages 70-90, using the CRA prescribed factors (5.28% at 71, climbing to 11.92% at 90).
RRIF Minimum Withdrawal Calculator
Calculate your mandatory minimum RRIF withdrawal and estimated tax based on your age and balance.
Must be 71+ for RRIF conversion
CPP, OAS, pension, etc.
How it works: At age 71, you must withdraw a minimum of 5.28% of your RRIF balance ($500,000) = $26,400. This is added to your other income ($30,000) for total income of $56,400. Estimated Ontario tax is $11,540.629, leaving you $20,998.003 after tax.
The T1032 Pension Income Splitting Election
The federal pension income splitting election under ITA section 60.03, filed annually on form T1032 with the T1 returns of both spouses, allows up to 50% of eligible pension income from one spouse to be reported on the other spouse's return. For RRIF income, both spouses must be at least 65 (which George and Helen both are). DB pension income has no age requirement.
For George and Helen at age 70, the optimal election each year is to equalize the RRIF income between both spouses. Combined RRIF income year 1 = $50,000. Split 50/50 means each spouse reports $25,000 of RRIF income on their T1. George's reported income drops from $60,000 to $53,000 (saving the 33% bracket on the shifted $5,000 portion that was previously his top dollar = ~$165 of tax saved). Helen's reported income rises from $48,000 to $53,000 (the additional $5,000 lands in her 28% bracket = $1,400 of tax added).
Wait — Helen's tax goes UP more than George's goes down? Yes — because in year 1, George's incremental dollar was barely into the 33% bracket while Helen's was firmly in 28%. The arbitrage is small. The savings show up in years 75-85 when George's growing RRIF pushes his marginal dollar past 33% into 35%, while Helen's stays in 28%. By year 15-17, the annual marginal-rate arbitrage from splitting is $1,000-$2,000/year.
The bigger savings come if either spouse develops additional income — DB pension survivor benefit, rental income, larger investment portfolio — that pushes one toward the OAS clawback threshold. T1032 splitting is the mechanism that lets you rebalance income each year to keep both spouses under $95,323.
Calculator: Full retirement income sequencing (both spouses)
Model George and Helen's joint income picture across ages 70-90, with and without T1032 splitting. The calculator uses 2026 CPP/OAS maximums and SK combined marginal rates.
Retirement Income Sources Calculator
Project your total retirement income from all sources
Max is ~$1,433/mo in 2026
Your Projected Retirement Income (Annual)
Optimization Tips: Draw from RRSP/RRIF before 71 if in low-income years. Delay CPP to 70 if healthy and expect to live past 82. Use TFSA withdrawals to supplement without increasing taxable income. Consider pension income splitting with spouse at 65+.
Saskatchewan-Specific Estate Considerations
Saskatchewan's probate (technically the SK Court of King's Bench tariff fee) is $7 per $1,000 of estate value, with no threshold and no maximum cap. On a $1M estate, that's $7,000. Moderate by Canadian standards — much less than Nova Scotia's $16,500 on $1M, similar to Ontario's $14,250, more than Alberta's $525 maximum.
For George and Helen, the more material estate concern is the income tax that hits on the RRIF inclusion when the second spouse dies (no further spousal rollover available). At SK's 47.50% top marginal rate, a residual $500K RRIF triggers $237,500 of terminal tax on the final T1 return. The strategy to soften this: lifetime RRIF meltdown to shrink the residual balance, successor-annuitant designations on both RRIFs (so the surviving spouse becomes the new owner without probate or delay), and joint tenancy on the home and chequing accounts.
Where T1032 Splitting Doesn't Help
- Both spouses already in the same bracket with no clawback exposure. If both spouses have $35K of RRIF + $28K of CPP+OAS each, both are at $63K — both firmly in SK's 28% bracket, neither close to $95K. Splitting moves no needle.
- Lower-earning spouse has age-credit or pension-credit exhaustion. If splitting drives the lower-earning spouse's tax owing to zero, additional shifted income produces no more savings. Optimize the split percentage.
- One spouse imminently terminal. Focus on successor-annuitant designation for the rollover at death, not on T1032 during the terminal year.
The $52,500 (or $18,000) That Comes from One Election Each Year
For George and Helen specifically — both 70, $1M combined RRIFs, no DB pension, no major other income, both healthy — annual T1032 splitting saves a modest $18,000 over 17 years ($1,000-$1,200/year on average). For SK couples with one spouse holding a substantial DB pension or major investment income that pushes them past the OAS clawback threshold, the same election can save $3,000-$5,000/year in clawback alone — $52,500+ over a 15-year retirement.
The lever is the annual signature on the T1032 form at tax time. Tax software handles the calculation; both spouses sign; the election applies for that tax year. Cost: zero. Time: 30 seconds. The annual decision is whether to file and at what percentage. For SK couples with any RRIF asymmetry, the answer is almost always: file at 50%.
Run your SK couple's numbers
Every couple's sequence is different — RRIF balances, DB pension exposure, OAS clawback risk, age gap, beneficiary designations. Book a free 15-minute call. We'll model the T1032 splitting math and the estate-transfer optimization. No obligation. We do not sell products.
Book a free 15-min call →Frequently Asked Questions
Q:What is the federal pension income splitting election (T1032) in 2026?
A:The federal pension income splitting election is a tax-return mechanism under section 60.03 of the Income Tax Act allowing a Canadian taxpayer to allocate up to 50% of eligible pension income to their spouse or common-law partner for tax purposes. The election is filed annually using form T1032 attached to both spouses’ T1 income tax returns. Both spouses must sign the election. The result: the spouse who originally received the pension income reports a lower amount on their T1, and the receiving spouse reports a correspondingly higher amount. Eligible pension income includes RRIF/LIF withdrawals (both spouses must be 65+ for these to count), life annuity payments from registered plans, and DB pension income (no age requirement for DB). Critically, CPP/QPP retirement pension is NOT eligible — CPP has its own splitting mechanism via pension sharing (s. 65.1 CPP Act). Once elected for a given tax year, the split applies for that year only; it must be re-elected each year.
Q:How much pension income can be split between spouses in Saskatchewan?
A:Under the federal T1032 election, up to 50% of eligible pension income from one spouse’s tax return can be allocated to the other spouse’s return — for federal income tax purposes. Saskatchewan, like most other provinces, follows the federal allocation automatically. So a SK couple where the higher-earning spouse has $50,000 of RRIF income can elect to report $25,000 on the higher-earning spouse’s SK return and $25,000 on the lower-earning spouse’s SK return. The 50% maximum is per source of eligible income — meaning if the higher-earning spouse has $50K RRIF + $20K DB pension, the maximum allocation to the lower-earning spouse is $25K RRIF + $10K DB = $35K total. The exact dollar amount within the 50% maximum is at the couple’s discretion each year; you can split 30% one year and 50% the next based on changing bracket positions.
Q:When should a Saskatchewan couple file the T1032 election?
A:A SK couple should file the T1032 election in any tax year where (a) one spouse has eligible pension income (RRIF, LIF, DB pension), (b) both spouses are at least 65 (for RRIF/LIF eligibility — DB has no age requirement), and (c) the spouses have meaningfully different marginal tax rates or one spouse is at risk of OAS clawback. The classic scenarios: one spouse has the larger RRIF and approaches the $95,323 OAS clawback threshold while the other has unused threshold; one spouse is in the 35% bracket and the other is in the 28% bracket on additional income; or both spouses want to equalize incomes to maximize the use of both spouses’ basic personal amounts and age amounts. The election costs nothing administratively — both spouses simply complete and sign the T1032 form when filing their annual T1 returns. Tax software automatically generates the form when relevant amounts are entered.
Q:How does the OAS clawback threshold work for couples in 2026?
A:The OAS clawback threshold under ITA section 180.2 is $95,323 of net income in 2026, calculated separately for each spouse on each spouse’s individual T1 return. There is no joint or couple-level threshold — each spouse’s OAS is clawed back individually based on their own reported net income. Above the threshold, the recovery tax is 15% of every dollar of income above $95,323, up to a full clawback at approximately $155,000 of net income for the 65-74 age band. The implication for couples: combined income up to $190,646 ($95,323 × 2) can be claw-back-free if income is split evenly. If all income lands on one spouse’s return, that spouse’s clawback bites at $95,323 while the other’s unused threshold goes to waste. T1032 pension income splitting is the federal mechanism that allows couples to fix this asymmetry — splitting up to 50% of eligible pension income to use both spouses’ thresholds.
Q:What is the spousal rollover for RRIFs in Saskatchewan?
A:The spousal rollover for RRIFs is a federal tax provision under ITA section 146.3(6) and (6.1) that allows a deceased RRIF holder’s remaining balance to transfer tax-free to the surviving spouse’s RRIF (or RRSP if the survivor is under 71). The transfer is at full book value with no immediate income tax inclusion. The receiving spouse continues to pay tax on RRIF withdrawals as they take them — preserving the tax deferral. The mechanism applies in Saskatchewan exactly as in other provinces (federal income tax law applies uniformly across the country). To trigger the rollover, the deceased’s RRIF must have the surviving spouse named either as the ‘successor annuitant’ on the RRIF contract (the simpler option — the survivor becomes the new owner without the funds passing through the estate) or as the ‘beneficiary’ (the funds pass through the estate first but the rollover still applies if elected on the estate’s final return). The successor annuitant designation avoids both probate and the income inclusion delay.
Q:What is Saskatchewan’s probate fee structure?
A:Saskatchewan charges probate (officially the ‘tariff fee’ under the SK Court of King’s Bench) at $7 per $1,000 of estate value, with no threshold (the fee applies from dollar one) and no maximum cap. On a $500K estate, SK probate is $3,500. On $1M: $7,000. On $5M: $35,000. The flat-rate structure is neither the cheapest in Canada (Alberta’s $525 max, Manitoba’s $0) nor the most expensive (Nova Scotia’s $16.95/$1K above $100K). For SK couples planning estate transfers, the probate exposure is moderate and rarely the primary driver of estate-planning decisions — the income tax on the RRIF inclusion at the second spouse’s death (typically at top marginal rate 47.50%) is the larger lever.
Q:Do both spouses need to be 65 for T1032 RRIF splitting?
A:Yes — for RRIF (and LIF, registered annuity) income to be eligible for T1032 splitting, BOTH spouses must be at least 65 during the tax year for which the election is made. If one spouse is 70 and the other is 63, RRIF income from either spouse is NOT eligible for T1032 splitting until both turn 65 (specifically, until the tax year in which both are 65 throughout, or partial-year rules apply). DB pension income has no age requirement — it can be split at any spousal age combination as long as both are eligible for the federal election (married or common-law). For couples in the situation where one spouse is over 65 and the other is under, the couple has to wait for the younger spouse to turn 65 before RRIF splitting becomes available. This timing matters when the older spouse is approaching the OAS clawback threshold during the gap years.
Q:How much does T1032 splitting save the SK couple in this article in lifetime tax?
A:For the scenario in this article — SK couple both 70, $600K + $400K RRIFs, combined CPP+OAS of $54,000, no DB pension, no major other income, both healthy with median life expectancy past 85 — annual T1032 splitting saves approximately $3,500/year in OAS clawback (starting around age 78 when the higher-balance RRIF’s minimum percentage breaches the threshold for the higher-earning spouse) plus approximately $400-$800/year in marginal-rate arbitrage during years 70-77 when one spouse is in the 33% bracket and the other in the 28%. Over the remaining 15 years of expected joint retirement, cumulative savings are roughly $52,500 in OAS clawback + $9,000 in marginal-rate arbitrage = $61,500 total. The savings require zero investment-selection changes — only the annual signature on the T1032 election at tax time. Tax software handles the calculation automatically.
Question: What is the federal pension income splitting election (T1032) in 2026?
Answer: The federal pension income splitting election is a tax-return mechanism under section 60.03 of the Income Tax Act allowing a Canadian taxpayer to allocate up to 50% of eligible pension income to their spouse or common-law partner for tax purposes. The election is filed annually using form T1032 attached to both spouses’ T1 income tax returns. Both spouses must sign the election. The result: the spouse who originally received the pension income reports a lower amount on their T1, and the receiving spouse reports a correspondingly higher amount. Eligible pension income includes RRIF/LIF withdrawals (both spouses must be 65+ for these to count), life annuity payments from registered plans, and DB pension income (no age requirement for DB). Critically, CPP/QPP retirement pension is NOT eligible — CPP has its own splitting mechanism via pension sharing (s. 65.1 CPP Act). Once elected for a given tax year, the split applies for that year only; it must be re-elected each year.
Question: How much pension income can be split between spouses in Saskatchewan?
Answer: Under the federal T1032 election, up to 50% of eligible pension income from one spouse’s tax return can be allocated to the other spouse’s return — for federal income tax purposes. Saskatchewan, like most other provinces, follows the federal allocation automatically. So a SK couple where the higher-earning spouse has $50,000 of RRIF income can elect to report $25,000 on the higher-earning spouse’s SK return and $25,000 on the lower-earning spouse’s SK return. The 50% maximum is per source of eligible income — meaning if the higher-earning spouse has $50K RRIF + $20K DB pension, the maximum allocation to the lower-earning spouse is $25K RRIF + $10K DB = $35K total. The exact dollar amount within the 50% maximum is at the couple’s discretion each year; you can split 30% one year and 50% the next based on changing bracket positions.
Question: When should a Saskatchewan couple file the T1032 election?
Answer: A SK couple should file the T1032 election in any tax year where (a) one spouse has eligible pension income (RRIF, LIF, DB pension), (b) both spouses are at least 65 (for RRIF/LIF eligibility — DB has no age requirement), and (c) the spouses have meaningfully different marginal tax rates or one spouse is at risk of OAS clawback. The classic scenarios: one spouse has the larger RRIF and approaches the $95,323 OAS clawback threshold while the other has unused threshold; one spouse is in the 35% bracket and the other is in the 28% bracket on additional income; or both spouses want to equalize incomes to maximize the use of both spouses’ basic personal amounts and age amounts. The election costs nothing administratively — both spouses simply complete and sign the T1032 form when filing their annual T1 returns. Tax software automatically generates the form when relevant amounts are entered.
Question: How does the OAS clawback threshold work for couples in 2026?
Answer: The OAS clawback threshold under ITA section 180.2 is $95,323 of net income in 2026, calculated separately for each spouse on each spouse’s individual T1 return. There is no joint or couple-level threshold — each spouse’s OAS is clawed back individually based on their own reported net income. Above the threshold, the recovery tax is 15% of every dollar of income above $95,323, up to a full clawback at approximately $155,000 of net income for the 65-74 age band. The implication for couples: combined income up to $190,646 ($95,323 × 2) can be claw-back-free if income is split evenly. If all income lands on one spouse’s return, that spouse’s clawback bites at $95,323 while the other’s unused threshold goes to waste. T1032 pension income splitting is the federal mechanism that allows couples to fix this asymmetry — splitting up to 50% of eligible pension income to use both spouses’ thresholds.
Question: What is the spousal rollover for RRIFs in Saskatchewan?
Answer: The spousal rollover for RRIFs is a federal tax provision under ITA section 146.3(6) and (6.1) that allows a deceased RRIF holder’s remaining balance to transfer tax-free to the surviving spouse’s RRIF (or RRSP if the survivor is under 71). The transfer is at full book value with no immediate income tax inclusion. The receiving spouse continues to pay tax on RRIF withdrawals as they take them — preserving the tax deferral. The mechanism applies in Saskatchewan exactly as in other provinces (federal income tax law applies uniformly across the country). To trigger the rollover, the deceased’s RRIF must have the surviving spouse named either as the ‘successor annuitant’ on the RRIF contract (the simpler option — the survivor becomes the new owner without the funds passing through the estate) or as the ‘beneficiary’ (the funds pass through the estate first but the rollover still applies if elected on the estate’s final return). The successor annuitant designation avoids both probate and the income inclusion delay.
Question: What is Saskatchewan’s probate fee structure?
Answer: Saskatchewan charges probate (officially the ‘tariff fee’ under the SK Court of King’s Bench) at $7 per $1,000 of estate value, with no threshold (the fee applies from dollar one) and no maximum cap. On a $500K estate, SK probate is $3,500. On $1M: $7,000. On $5M: $35,000. The flat-rate structure is neither the cheapest in Canada (Alberta’s $525 max, Manitoba’s $0) nor the most expensive (Nova Scotia’s $16.95/$1K above $100K). For SK couples planning estate transfers, the probate exposure is moderate and rarely the primary driver of estate-planning decisions — the income tax on the RRIF inclusion at the second spouse’s death (typically at top marginal rate 47.50%) is the larger lever.
Question: Do both spouses need to be 65 for T1032 RRIF splitting?
Answer: Yes — for RRIF (and LIF, registered annuity) income to be eligible for T1032 splitting, BOTH spouses must be at least 65 during the tax year for which the election is made. If one spouse is 70 and the other is 63, RRIF income from either spouse is NOT eligible for T1032 splitting until both turn 65 (specifically, until the tax year in which both are 65 throughout, or partial-year rules apply). DB pension income has no age requirement — it can be split at any spousal age combination as long as both are eligible for the federal election (married or common-law). For couples in the situation where one spouse is over 65 and the other is under, the couple has to wait for the younger spouse to turn 65 before RRIF splitting becomes available. This timing matters when the older spouse is approaching the OAS clawback threshold during the gap years.
Question: How much does T1032 splitting save the SK couple in this article in lifetime tax?
Answer: For the scenario in this article — SK couple both 70, $600K + $400K RRIFs, combined CPP+OAS of $54,000, no DB pension, no major other income, both healthy with median life expectancy past 85 — annual T1032 splitting saves approximately $3,500/year in OAS clawback (starting around age 78 when the higher-balance RRIF’s minimum percentage breaches the threshold for the higher-earning spouse) plus approximately $400-$800/year in marginal-rate arbitrage during years 70-77 when one spouse is in the 33% bracket and the other in the 28%. Over the remaining 15 years of expected joint retirement, cumulative savings are roughly $52,500 in OAS clawback + $9,000 in marginal-rate arbitrage = $61,500 total. The savings require zero investment-selection changes — only the annual signature on the T1032 election at tax time. Tax software handles the calculation automatically.
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