piggy bank with flag of Canada

This article appears in the March 2021 issue of Investment ExecutiveSubscribe to the print edition, read the digital edition or read the articles online.

Canadians held almost $300 billion in TFSAs at the end of 2018, the most recent year for which the Canada Revenue Agency publishes statistics. That is a 16.5-fold increase in fair market value — achieved through a combination of new contributions and growth in existing assets — since the end of 2009, the year TFSAs were introduced. Back then, Canadians held slightly more than $18 billion in the tax-sheltered plans. TFSA holders had an average of $20,292 in their TFSAs at the end of 2018, suggesting plenty of room for growth. The average unused contribution room at the time was $34,165.

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Total fair market value of plan assets increased 16.5-fold over the first decade