The introduction of the Tax Free Savings Account or TFSA has been hailed as the biggest improvement to Canada’s retirement system since the introduction of RRSPs five decades earlier. Mercer principal Malcolm Hamilton has long noted that citizens of the U.S. and U.K. have had almost twice the levels of tax-assisted savings than Canadians are granted in their pensions and RRSP contribution room. In this latest audio segment from a long interview with Hamilton conducted this summer, I asked whether the addition of the TFSA had significantly reduced this gap.
Q: Has the addition of the TFSA closed the tax-assisted gap between Canada and the U.S. and UK?
A: Press play to hear Hamilton’s response: