Can Couples 10 Years Apart Retire Together?

Hi Kenny — I’ll answer your last question first: do people stick to the exact retirement plan they build? The honest answer is sometimes yes, often no. Plans capture priorities and preferences at a point in time, and many people will continue with activities they enjoy. But life and finances evolve — health, family, markets, housing and interests can all change. A plan that assumes selling a home in 20 years is a reasonable option to include, but it’s not a guarantee anyone will follow that path forever. It’s simply one possibility to keep in mind when making long-term decisions.

The real purpose of retirement planning is to test “what if” scenarios so you can see which paths make sense and which ones are risky. That process teaches you what choices you’ll need to make if circumstances change. A good plan is less about rigidity and more about preparation: it helps you manage change, identify trade-offs, and perform annual reviews so you can make modest course corrections rather than scrambling when something unexpected happens.

Looking at your situation, the model suggests you do not quite have enough saved to guarantee the retirement you described. Models are not perfect forecasts, but they do provide useful guidance. They show where shortfalls are likely to appear and which adjustments can extend the sustainability of your income.

Tinkering with the plan

Using a simple projection: if your investments earn 5% annually and inflation averages 2%, the model shows you begin to run short of after-tax income around the time your wife turns 68. You will still hold assets in a life income fund (LIF, the successor to a locked-in retirement account such as a LIRA), but rules that limit how much you can withdraw from a LIF mean you may not be able to sustain an after-tax income of $110,000.

There are a few straightforward adjustments that change the outcome. If projected investment returns rise from 5% to 6%, your projected income can be sustained until your wife is about 71. Alternatively, reducing annual spending by $5,000 (rather than increasing returns) produces a similar improvement and also sustains income to about age 71. If you both achieve a modestly higher return and trim $5,000 from annual expenses, the combined effect allows you to retire as planned and still have significant assets later in life — the model indicates that by age 90 your wife’s net worth would be roughly equivalent to $1.54 million in today’s dollars under that scenario.

Be cautious about relying solely on optimistic return assumptions or large expense cuts to solve a planning shortfall. Overly aggressive return targets (for example, bumping from 6% to 7% to make numbers work) increase risk. Likewise, assuming a permanent $5,000 spending reduction requires deciding today what you would give up. If you truly lack the income you’ll adapt, but the goal is to avoid unnecessary hardship while maintaining a lifestyle you enjoy.

Another option I tested was selling your home in about 15 years and downsizing to a condo that costs roughly half as much. That move would free up additional capital and make the retirement plan work as you envision, leaving your wife with a projected net worth of about $1.05 million at age 90 under that scenario.

A different, lower-risk approach is to both work two more years and retire at the end of 2029. Once your line of credit is repaid, you could redirect the $36,000 you currently apply to that debt into contributions to your RRSPs. The tax refund from those contributions — roughly $12,000 in the model — could then be used to top up your TFSA. That disciplined approach increases your retirement resources while preserving flexibility, and in the projection it produces a comfortable outcome with your wife’s net worth around $1.48 million at age 90.

A retirement plan is a dynamic thing

Which path is right depends on your priorities and tolerance for change. Do you prefer to preserve the lifestyle you described, or would you rather accept a modest spending reduction? Are you willing to work two more years to add security, or is downsizing in the future an acceptable trade-off? There is rarely a single “right” answer — there are multiple viable combinations of actions that can achieve a comfortable retirement.

If the explanations above felt dense, imagine using a simple interactive tool that lets you test scenarios like a game: change the retirement date, tweak return assumptions, reduce spending, or model selling your home, and immediately see the projected effects. That kind of simulation helps you learn quickly and make informed choices.

Kenny, no retirement plan is set in stone. The value of planning is knowing where you stand today, understanding realistic options, choosing a path you’re comfortable with, and then monitoring progress so you can stay on course or adapt as life unfolds. Annual reviews, modest adjustments, and clear choices about spending and savings will keep you flexible and better prepared for whatever comes next.

Read more Ask a Planner columns:

• How to unwind a spousal loan
• Can I still use my FHSA after my spouse bought a condo?
• How does a pension buyback work?
• Making the most of the pension tax credit