Canadians don’t want TFSA limit cut

Both the NDP and Liberals have said they’d roll contribution limits back

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Canadians are heading to the polls in a month and a majority of them don’t want the TFSA contribution limit to be reduced.

An Angus Reid Institute survey finds 67% of respondents want the federal government to keep the $10,000 limit intact.

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If elected, both the Liberals and the NDP have said they would roll back the limit. One-third of Canadians support their plan to reverse the recent increase.

In April, the federal government increased the limit to $10,000 from $5,500.

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The survey also finds a large majority (81%) back the Liberal and New Democrat pledge pledge to maintain eligibility for old age security (OAS) at age 65. Just 19% believe the OAS eligibility age should be 67.

OAS eligibility will increase gradually between 2023 and 2029.

Canadians born on March 31, 1958, or earlier will not be affected. Those born on or after Feb. 1, 1962, will have an eligibility age of 67, while those born between April 1, 1958, and Jan. 31, 1962, will be part of the phase-in period and will have an eligibility age between 65 and 67.

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This article originally appeared on Benefits Canada.

One comment on “Canadians don’t want TFSA limit cut

  1. Although I am a very strong proponent of TFSAs I can live with going back to the original plan if the cost savings to the government is plowed into something essential like better medical care for seniors. I was able to max out our TFSAs because we had some inherited money and opted to shelter as much as possible. And perhaps in our retirement we will have further income that will need sheltering. This too will go into our TFSAs first. But really, the people who benefit the most from higher contribution limits are those with higher incomes.

    I don’t think many middle class Canadians were even able to max out at the old rates, let alone at $10k per year. I struggled to find the money to do it along with all the other monthly bills. I will use whatever tax shelters available when I have excess cash in my future – and know that paying some income tax is part of being a member of Canadian society.

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