New TD survey reveals nearly a third of Gen Z still unclear on TFSAs, potentially missing out on long-term, tax-free growth
TORONTO, April 23, 2025 /CNW/ – As tax refunds land in Canadians’ bank accounts, a new TD survey reveals that Gen Z is leading the charge when it comes to investing their returns—but many may be leaving money on the table.
According to the survey, three-quarters (76 per cent) of Gen Z Canadians expecting a tax return this year say they plan to invest it, outpacing both Millennials (60 per cent) and Gen X (48 per cent). Yet despite this enthusiasm, only half (51 per cent) say they have a TFSA (Tax-Free Savings Account) and among those that don’t, nearly one-third (30 per cent) say it’s because they don’t understand how it works – a knowledge gap that could potentially be costing them valuable growth opportunities.
“A TFSA isn’t just a savings account—it’s a gateway to long-term, tax-free growth,” says Pat Giles, Vice President, Saving & Investing Journey at TD. “For young Canadians, the earlier you start, the more powerful the impact. Even small, consistent contributions can build serious financial confidence over time, making sure your money is working as hard as you are.”
Economic pressures are pushing Canadians to rethink their financial and investment strategies.
TD’s survey also finds that 90 per cent of Canadians are shifting their financial strategies in response to external pressures—like inflation and rising costs of living. Two-thirds (67 per cent) say those pressures are directly impacting how they’ll use their tax refund this year.
Among Canadians expecting a tax return:
53 per cent plan to invest their refund in their future;
44 per cent will contribute to a TFSA;
31 per cent will add to an RRSP.
But among those without a TFSA, the barriers are clear:
51 per cent say they don’t have enough money to contribute;
20 per cent cite confusion about how TFSAs work;
14 per cent prefer other savings vehicles.
Giles emphasizes that a TFSA doesn’t require a big upfront investment. “You don’t need thousands of dollars to get started. Even small contributions add up and they grow tax-free. Speaking with a TD Personal Banker can help make it feel manageable and aligned to your financial goals.”
TFSAs: More than a piggy bank
Current TFSA holders are using the account in diverse ways:
29 per cent use it for both short-term savings and long-term investing;
28 per cent focus on long-term growth (e.g., retirement);
21 per cent prioritize tax-efficient investing;
18 per cent use it as a short-term savings tool.
Understanding your investing options No matter how Canadians are looking to invest in their future, having the right information is key to making confident financial decisions. TD offers a range of tools and resources to help Canadians learn more about TFSAs and other investment options including:
Booking an appointment with a TD Personal Banker for personalized guidance on saving and investing strategies.
Using TD Goal Builder, where a TD Personal Banker can provide personalized investment advice to help customers work toward their financial goals.
The TD Ready Advice Hub which has information and articles available on a variety of financial topics and investing.
With tax season in full swing, the message is clear: Gen Z is ready to take control of their financial future—but understanding the tools available is key to making the most of every dollar.
About TD Bank Group The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by assets and serves over 27.9 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America’s Most Convenient Bank®, TD Auto Finance U.S., and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world’s leading online financial services firms, with more than 17 million active online and mobile customers. TD had $2.09 trillion in assets on January 31, 2025. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges.
About the TD Survey This survey was undertaken by The Harris Poll Canada. It ran overnight on March 21st, 2025, with 1,544 randomly selected Canadian adults who are Maru Voice Canada online panellists. The results have been weighted by age, gender, region and education (and in Quebec, language) to match the population, according to census data. This is to ensure the sample is representative of the entire adult population of Canada. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of ±2.5per cent, 19 times out of 20. Discrepancies in or between totals when compared to the data tables are due to rounding.
