Wealth planning for couples without children

A recent report lists Canada as having the highest percentage of couples without children among all developed nations.1 Financial life is different for this demographic group, with unique issues and opportunities.

Here’s a look at financial decisions for a couple without children across several components of wealth planning, including investments, insurance and estate planning.

When will you retire?

Couples without children have a savings advantage. With child care, food, clothing, summer camp, braces and post-secondary education, raising children is costly. If you invest funds equal to these expenses, you potentially gain the opportunity to retire earlier. However, you must account for our increasing longevity. For example, someone who retires at age 55 will need to support a retirement expected to last about 30 to 40 years. Should you wish to retire earlier than a traditional age, we can project the savings you must accumulate by your preferred retirement age to achieve your desired retirement lifestyle without the worry of outliving your savings.

Insurance remains important

You won’t usually need as much life insurance as a couple with children, but you may still need some amount of life insurance coverage. A higher-income spouse may need life insurance to protect their spouse’s financial security, especially at younger ages when less money has been saved. Some individuals choose permanent life insurance to meet tax and estate planning needs, such as offsetting the tax payable on estate assets. A business owner may need life insurance to protect the company’s future, particularly if they have a business partner.

You still have the need to safeguard your income with disability insurance, and you may also want critical illness insurance. In addition, consider the potential need to cover long-term care expenses, especially without a child to provide personal support if required. You can purchase insurance to cover in-home care or living in a long-term care home, or set aside funds to cover these costs.

Estate planning matters

Planning your estate can be easy to put off without the concern of leaving children an inheritance. However, in a way, you must give estate planning even more consideration. Parents typically have an easy decision when naming beneficiaries, but it’s not so straightforward for you.

In your wills, you and your partner might name each other as the primary beneficiary. But who will the surviving individual name as the beneficiary or beneficiaries? Perhaps you’ll choose siblings, nieces or nephews as heirs of your estate. You may also or instead wish to leave a legacy to a charity supporting a cause that’s meaningful to you.

Greater consideration also applies to your choice of executor,2 as parents often choose an adult child for this role. You may want to name your spouse, a sibling or a close friend, but do take the age factor into account. At older ages, the work of an executor may become burdensome, and administering an estate can take many months or even years. You may consider choosing a niece or nephew who’s able and interested, or a professional or trust company.

Career and lifestyle flexibility

Couples without children have the potential to retire earlier by investing more during their working years. However, another option is to retire at a traditional age and take advantage of higher discretionary income in other ways.

Career choices. Without the financial need to support children, one or both spouses may pursue a career they find personally fulfilling over one that’s more lucrative. If a spouse experiences job burnout, they may have the option to take a break from working. Perhaps a spouse has dreamed of starting a business and wants to give their vision a chance. Someone may have an elderly parent who requires personal support, and the couple is financially able to allow the spouse to leave their job and care for their parent.

Lifestyle options. Rather than retiring earlier, a couple may choose to spend on experiences and luxuries to enjoy life to the fullest while they’re younger. That may mean travelling more, taking annual ski trips, purchasing a vacation property or whatever they wish. Just recognize it’s still essential to live within your means to keep retirement plans on track.

 

¹ University of Oxford: Wellbeing Research Centre, “World Happiness Report,” 2025.

² An executor is also known as a liquidator, estate trustee or personal representative, depending on the province.