Recently, wealthier Canadians have been the majority investors in TFSAs, trying to avoid tax pay outs at retirement. This is not why these investment plans were created. Canadians who are not wealthy often view TFSAs as short-term accounts but should really be utilized for retirement savings. A new report by the Institute for Research on Public Policy recommends that more low income investors be educated on the benefits of these accounts as well as an initiative for employers to enroll employees in these accounts, as opposed to RRSPs, based on their incomes.

“The Institute for Research on Public Policy report argues that the TFSA needs to return to its roots: a savings tool for average Canadians”

Read more: https://www.bnnbloomberg.ca/personal-investor-tfsas-not-just-for-the-wealthy-1.1242298