That means the youngest cohort may be missing an opportunity for long-term, tax-free growth.
“The earlier you start, the more powerful the impact. Even small, consistent contributions can build serious financial confidence over time,” Pat Giles, vice-president of saving and investing journey at TD, said in a release.
Canadians of all ages who don’t have a TFSA cited several barriers to doing so. Just over half (51%) said they don’t have funds to contribute, one-fifth are confused about how they work and 14% prefer other savings methods, the survey found.
There were 17.8 million TFSA holders in Canada and 9.8 million contributed for the 2022 contribution year, according to Statistics Canada. Those who contributed to either a TFSA or an RRSP had a median contribution of $6,500 to their TFSA and those who contributed to both accounts had a median contribution of $6,150 in their TFSA.
TFSA holders use their accounts for different purposes: 28% focus on long-term growth, while 18% use them as a short-term savings tool. Another 29% use TFSAs for both short- and long-term investing, according to the TD survey.
Of the Canadians who expect a tax refund, 44% said they will contribute it to a TFSA and 31% to an RRSP.
The TD survey was conducted by The Harris Poll Canada on March 21, with 1,544 randomly selected Canadian adults. The results were weighted by age, gender, region and education (and in Quebec, language) to match the national population, according to census data.