FOR IMMEDIATE RELEASE
February 26, 2015
Two-thirds of CARP members support TFSA increase: CARP Poll™
Toronto, ON: In an overnight CARP Poll™, CARP members voice strong support for increasing the annual TFSA contribution limit to $11,000. The vast majority (81%) contribute to a TFSA.
In the overnight CARP Poll™ answered by more than 1,400 CARP members:
- Two-thirds (67%) support increasing TFSA limit from $5000 to $11000 [39% support it strongly]
- The vast majority (81%) have a TFSA
- 71% want changes to the RRIF rules to avoid outliving their money
- 81% think the government should encourage saving for retirement, not spending for today
The support for increasing the TFSA limit is rooted in concern for adequate retirement income and any measure that encourages it is favoured.
TFSAs have particular value for retirees who can no longer contribute to RRSPs and for lower income earners who do not benefit as much from tax deductible RRSP contributions. TFSA contributions are not deductible, so taxpayers pay taxes currently and eventually take the savings and earning out tax free. RRSP contributions are deductible currently but are taxable when withdrawn.
All major retirement savings vehicles – RRSPs, pension plans, CPP, PRPPs and TFSA – have the same tax deferral on investment income and therefore have the same impact on foregone tax revenues in relation to investment income.
The underlying rationale for this tax expenditure is that government has a role in encouraging retirement savings which ultimately benefit the economy – both currently as savings are invested in the economy and on retirement, to defray the living expenses of retirees and often offset the need for the Treasury to pay out GIS and OAS.
“CARP members would welcome the additional help in saving for their retirement needs but more so for those of their children and grandchildren. The arguments about budgetary costs are misplaced since it costs the same in foregone taxes whether we save in TFSAs or RRSPs or PRPPs. So the question is whether we should be encouraged to save or not. CARP members say yes.” said Susan Eng, VP, Advocacy for CARP
CARP is a national, non-partisan, non-profit organization committed to advocating for a New Vision of Aging for Canada, social change that will bring financial security, equitable access to health care and freedom from discrimination. CARP seeks to ensure that the marketplace serves the needs and expectations of our generation and provides value-added benefits, products and services to our members. Through our network of chapters across Canada, CARP is dedicated to building a sense of community and shared values among our members in support of CARP’s mission.
For further information, please contact:
Sarah Park 416.607.2471
Michael Nicin 416.607.2479
Director of Policy
Anna Sotnykova 416.607.2475
Media & Communications Coordinator
CARP, A New Vision of Aging for Canada
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