Tax-free savings accounts (TFSAs) are Canadians’ top choice when it comes to where to invest their money, according to Manulife Financial.
TFSAs have been investors’ number one pick since they were first introduced at the beginning 2009. Prior to this, registered retirement savings plans (RRSPs) were consistently chosen as the top investment vehicle.
“In his last budget, [former federal Finance Minister Jim Flaherty] estimated that by 2030, the TFSA and other registered plans would permit more than 90% of Canadians to hold all their financial assets in tax-efficient accounts,” said Marianne Harrison, senior executive vice-president and general manager, Canadian division, at Manulife Financial.
“Our survey shows this prediction has traction.”
The Department of Finance said that by the end of 2011, just three years after TFSAs were introduced, around 8.2 million Canadians had opened a TFSA and invested a total of more than $62 billion. At that point, around 80% of all TFSA investors had incomes below $80,000.
In order of preference, investors in Manulife’s most recent study chose TFSAs, RRSPs, registered education savings plans (RESPs), mutual funds and segregated funds as good picks for saving their money.
