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Most Canadians Adopting TFSA for Rainy Day

The HSBC Savers Survey found that 84 per cent of Canadians have some savings put aside.

This percentage is up dramatically compared to a 2006 HSBC survey, which found that only 67 per cent of Canadians had funds put away for the future or an emergency. The percentage of Canadians that indicated they have savings varied somewhat across the country:

– Albertans have the highest savings rate with 92 per cent indicating they have some savings
– Atlantic Canada has the lowest rate of savers at 77 per cent
– The percentage of Quebec savers was 80 per cent
– The savings rate for BC residents is 84 per cent, in line with the national average
– 89 per cent of Manitoba and Saskatchewan residents claimed to have savings
– 86 per cent of Ontario residents had some savings put away

The survey found that 88 per cent of Canadians are already aware of the TFSA, with 68 per cent of them saying they plan on opening an account. Of those planning to open a TFSA, 70 per cent say they would use it for general savings and retirement planning while 23 per cent see it as a good vehicle for emergency funds.

Younger people (defined as those aged 18-34) who plan to open a TFSA intend to use the account for general savings, emergencies or education. This is in contrast to older Canadians aged 34-54 who, according to the survey, are more likely to see their TFSA as part of their retirement savings.

34 per cent of those who plan to open a TFSA intend to open a high-interest savings account. This is especially true for younger respondents (aged 18-34) and for residents in Ontario. 15 per cent will be using their TFSA for Guaranteed Investment Certificates (GICs) or term deposits. 16 per cent anticipate using the TFSA for mutual funds or stocks and bonds, and 36 per cent intend to use a combination of all these investments and savings instruments.

The current economy also seems to be having an effect on TFSA awareness. 20 per cent of respondents indicated that economic conditions have in fact increased the likelihood that they will open a TFSA in the near future. The HSBC Savers Survey of 1,000 Canadians was conducted in February 2009 by the national market research data collection firm Opinion Search.

This entry was posted on Wednesday, July 1st, 2009 at 7:52 am and is filed under Advice. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

One Response to “Most Canadians Adopting TFSA for Rainy Day”

  1. free tax advice Says:

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    Most Canadians Adopting TFSA for Rainy Day | Tax Free Savings … is an excellent post about the free tax advice….


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