A poll suggests that almost a quarter of employers would consider the Tax-Free Savings Accounts (TFSAs) an important campaign issue if a federal election were called before enabling legislation was passed.
The Morneau Sobeco 60 Second Survey received responses from 270 employers and found that 23% considered it a major campaign issue, while 61% did not, and 16% were unsure.
When asked about the likelihood of their organization setting up an employer-sponsored TFSA, 40% of the 193 respondents considered it likely. According to the poll, the idea seems to have the most traction in Ontario and Quebec, while Atlantic Canada and Western Canada are less enthusiastic.
Greg Hurst, Morneau Sobeco’s national DC practice leader expects the TFSA to gain in popularity. “The positive interest at this early stage is already very high,” he says. “We think it is likely that interest in an employer-sponsored TFSA will rise further in the months ahead as more employers become comfortable with the concept and learn how TFSAs can be factored into their organization’s overall retirement and savings programs.”
While the overall reaction to the TFSA has been positive, the poll suggests that it will not have a drastic effect on people’s saving habits. Forty-five percent of the 237 respondents said they would maximize their RRSP contribution room first before contributing to a TFSA. Only 8% said they would contribute to a TFSA before contributing to an RRSP. The other 47% said they would contribute to both.
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