Despite an increasing amount of attention on TSFAs since budget 2015 was released, 28% of Canadians are still unsure of how these accounts work, finds a survey by Tangerine.
In addition, just over half could identify the new TFSA contribution limit of $10,000, and only 14% could identify the effective date of this new contribution limit (January 1, 2015).
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Of those Canadians surveyed, 51% reported they have a TFSA. But even among these account holders, there was confusion when it comes to contribution limits and rules. According to the findings, 31% of the TFSA holders are unaware you can carry over contribution room from previous years, and the same number (31%) are unaware they can contribute to their TFSA at any time throughout the year.
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Additional findings include:
- 62% of Canadians who have a TFSA only contribute once a year;
- 38% are using a TFSA to save for retirement;
- 42% have previously maxed out their accounts; and
- 9% of Canadians plan to open a TFSA this year, while 51% don’t plan to because they say they don’t have enough money.