A new survey finds that, although nearly half of Canadians have a tax-free savings account (TFSA), not all of them are actually using them.
The CIBC poll found 47 per cent of respondents said they had set up a TFSA, with approximately only half of those respondents saying they had actually made a contribution this year.
Part of that could be explained by the fact that 41 per cent of people say they have no immediate plans for any money they have set aside.
Another 36 per cent say they plan to use the TFSAs for retirement, with another 30 per cent saying they are saving for a rainy day.
The tax-free savings account has been around for nearly five years, meaning the max contribution room for most people will soon be $25,000 ($5,000 per year over five years).
Multiple polls show most Canadian’s still don’t know how tax-free savings account work, however.