BMO Poll: Contributions Remain High, But Canadians Still Puzzled by Tax Free Savings Accounts
- More than half of Canadians have a TFSA, with an average of $17,133 in their accounts - Less than a quarter of Canadians consider themselves to be 'very knowledgeable' about TFSAs - One-in-ten TFSA holders contributed more than their limit in 2015
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 02/02/16 -- Editors Note: There is an infographic associated with this press release.
While 55 per cent of Canadians have a Tax Free Savings Account and average annual contributions remain high, there is still confusion over how they work, what can be contained in them and the maximum contribution amounts, according to a report released today by BMO Bank of Montreal.
The report, conducted by Pollara, revealed that two-thirds of Canadians indicate they have some knowledge of TFSAs (67 per cent) and 17 per cent say they are 'very knowledgeable. Yet only 3 per cent of respondents were able to correctly answer eight basic true or false questions:
"Over the last few years the use of TFSA investments has continued to climb. Given that growth, it is important that Canadians be knowledgeable about the TFSA investment options available so they can maximize their benefits," explained Ryan ffrench, Director, Term Investments, BMO Bank of Montreal. "While retirement savings continue to be the main purpose for TFSA holders, our financial planners can explain the uses of a TFSA beyond a retirement fund and keep customers on track with their contributions to avoid penalties."
Keeping track is important because the report revealed that 10 per cent of TFSA holders contributed over their limit this past year:
Most Canadians (65 per cent) are holding cash within their TFSAs, but Mr. ffrench advises that "contributing other investment types with faster potential for growth can be more beneficial." After contributing the maximum amount to a TFSA, you must wait until the following year to contribute again to avoid penalties, but Mr. ffrench notes that any withdrawal amounts will be added to your contribution room for the following year.
BMO offers Canadians tips to avoid TFSA confusion:
Survey results cited in the BMO TFSA Report are from online interviews with an online sample of 1,000 Canadians 18 years of age and older, conducted between January 8th and 11th, 2016. As a guideline, a probability sample of this size would yield results accurate to +/- 3.1%, 19 times out of 20. Results have been weighted by age, gender and region to be representative of the Canadian adult population as a whole.
About BMO Financial Group
Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of approximately $642 billion as of October 31, 2015, and close to 47,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets.
To view the infographic associated with this press release, please visit the following link:
Contacts:
Media Contacts:
Matthew Duffin, Toronto
(416) 867-3996
Valerie Doucet, Montreal
(514) 877-8224
Internet:
Twitter: (at)BMOmedia
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Datum: 02.02.2016 - 11:00 Uhr
Sprache: Deutsch
News-ID 447923
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TORONTO, ONTARIO
Kategorie:
Commercial & Investment Banking
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