What happens to spousal support when both spouses retire?

When both spouses retire, the financial landscape that underpinned the original support order may change significantly, giving either party grounds to apply for a variation. Retirement income — including pensions, RRSP/RRIF withdrawals, CPP, and OAS — is counted as income for support purposes, so the question shifts to how each spouse's retirement income compares.

If the recipient spouse now has comfortable pension or investment income and the gap between incomes has narrowed, the payor may bring a variation application to reduce or end support. If the payor's income drops more steeply in retirement than the recipient's, the amount owed may decrease, but the payor still bears the burden of applying to the court (or agreeing with the other party) to change the order.

For long marriages with indefinite support orders, courts at retirement review the current financial positions of both spouses and ask whether the support objective — reducing economic inequality caused by the marriage — has been substantially achieved. Outcome varies widely depending on the size and balance of each spouse's retirement assets. Planning for retirement well before it happens, and understanding how your support order would be affected, is a worthwhile conversation to have with a lawyer.