Johnson doesn’t plan on cutting back his RRSP payments after he opens a TFSA. Like the majority of people who will set up an account, he plans to use the contribution room to save extra money that he can pull out without penalty if need be. “I don’t see it as being a huge part of my portfolio,” he says. “I keep money on the side for emergencies, so it would make sense to put that in a TFSA.”

Others might decide to use their new account as way to save for short-term goals, like a vacation or a new car. Either way Lovett-Reid is just happy people have another option to save. With only 7% of Canadians topping up their RRSP room, if there’s another incentive for Canadians to hang on to their money, that’s a good thing. “In a perfect world people would maximize their RRSPs and they’d put their extra money in a TFSA,” she says. “But really, I just want people to save.”