Half of Canadians (48%) now report having a TFSA, up 23% from 2012, according to BMO Bank of Montreal.

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However, the study found that many Canadians remain unfamiliar with specific aspects of the program.

The study, conducted by Pollara, revealed:

  • TFSA holders plan to contribute an average of $3,625 this year
  • Canadian men and women are equally likely to have a TFSA, while those aged 65+ are more likely to have an account than Canadians in other age groups (53%)
  • TFSA adoption is strongest in Western Canada (Alberta at 55%, the Prairies and B.C. at 53% each) and weakest in Atlantic Canada (34%)
  • Canadians identified not having to pay taxes on withdrawals (33%) and the ability to withdraw funds at any time (27%) as being the key benefits of the TFSA
  • TFSAs are being used most often as a vehicle to save for retirement (47%) and as an emergency source of funds (43%)
  • Cash is the most common instrument being held in TFSAs (57%), followed by mutual funds (25%), Guaranteed Investment Certificates (GICs) (23%), stocks (14%) and Exchange Traded Funds (ETFs) (5%)

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The report found that, while 68% of Canadians claim to be knowledgeable about TFSAs — up from 60% in 2012 — many are still not familiar with specific aspects of the account:

  • Just 19% know that the new contribution limit is $5,500 (up from $5,000)
  • Only 11% correctly identified all six types of investments that are eligible to be held within a TFSA
  • Around half of Canadians stated that they know when TFSA contributions are taxed (52%) and how much you are allowed to re-contribute after making a withdrawal (47%)
  • 10% of TFSA holders have over-contributed since opening an account

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