The cost of reversing the $10,000 TFSA

The cost of rolling back the $10,000 TFSA

High-income earners stand to lose $53K over a lifetime

  37 Premium content image

by

  37 Premium content image

No matter what your political leanings, this year’s federal election has shown there’s one thing the majority of Canadians agree on: you don’t want to see the new $10,000 Tax-Free Savings Account contribution room limit rolled back to $5,500. These are the findings from an Angus Reid survey, which found that 67% of Canadians aren’t in favour of any political party reversing the increase. So what would losing an additional $4,500 a year of extra tax-sheltered savings room in a TFSA cost high-income earners over a lifetime of investing? Plenty, as you can see below.

 

Screen shot 2015-10-13 at 2.52.35 PMAssumptions: We’ve assumed 5% equity returns and a combined federal and provincial tax rate of 50%.

Comments are closed.