TFSAs: Who has them and why

Recent RBC survey data shows how many Canadians have TFSAs, and what they’re doing with them.

Looking at the Canadian public as a whole, an overwhelming majority—77%—have heard about TFSAs, but less than half of this group has actually opened one. About 20% have withdrawn money from their TFSAs—most often to cover an emergency. Younger Canadians (aged 18 to 34) are using TFSAs mostly for emergency or everyday savings.

Among boomers, 97% have heard of TSFAs, and nearly two-thirds have opened one. Ten percent have withdrawn money from their TFSAs, in most cases for large or special purchases. Overall, boomers are using TFSAs mainly to shelter their savings from taxes.

Among business owners planning to retire within five years, 97% have heard of TSFAs, and 58% of this group have opened one. Of this 58%, over half are using TFSAs to save for retirement, and 7% have already withdrawn money from them—mainly for large or special purchases, to cover day-to-day expenses or to renovate their homes.