Ten years of tax-free savings accounts have shown us these hugely popular savings vehicles have a weak spot.
No, it’s not that TFSAs should have a higher annual contribution limit. The real problem is that they’re not serving lower-income Canadians as well as they should. Too many low earners are using registered retirement savings plans to save for retirement when TFSAs would be vastly better. The next change to TFSAs should help them outshine RRSPs for low-income people who will receive the Guaranteed Income Supplement when they retire.
“When TFSAs were introduced [in the 2008 federal budget], the documents went on […]
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