TD Offers Tools, Resources and Advice to Help Canadians Confidently Navigate RRSP Season
"Regardless of whether you're planning for long-term retirement or for a shorter-term goal, RRSPs and TFSAs are two popular and important options to help grow your savings," says
Canadians Surveyed Conflicted on Best Way to Save
When it comes to saving for retirement, RRSPs are often viewed as the better choice (61 per cent of survey respondents, compared to 22 per cent of respondents who feel TFSAs are better). In contrast, TFSAs are the preferred choice for Canadians surveyed saving for a home renovation (51 per cent compared to 13 per cent who prefer RRSPs).
The survey reveals mixed views when it comes to the best way to save for a down payment on a first home. Forty-one per cent of surveyed Canadians believe a TFSA is the best choice, compared to 25 per cent who think an RRSP is the better option. Even experienced homeowners are conflicted, with 15 per cent saying they believe an RRSP is the right option to help save for a down payment on a new home (that isn't their first), despite the associated tax implications.
Canadians surveyed are even more unsure when it comes to the impact the two savings vehicles have on their taxes. Thirty-five per cent of survey respondents say they don't understand the tax implications of a TFSA, and another 30 per cent say the same when it comes to an RRSP. Furthermore, almost one in four (22 per cent) respondents say they would choose a TFSA to help reduce their taxable income for the following year, reaffirming a lack of understanding of how TFSAs work given that TFSAs do not allow you to reduce your taxable income.
"The survey data show that many Canadians do not fully understand key characteristics of a TFSA and an RRSP, such as the tax benefits and withdrawal considerations," says Diplock. "An advisor can help educate on these financial products and work with you to assess your personal situation and find the right solutions for your specific goals and financial needs."
TD Offers Help to Canadians Navigating RRSP Season
Earlier research from the TD Financial Health Index shows that those Canadians surveyed are not confident that they are on track to meet their long-term financial goals, and 62 per cent don't know where or who to turn to for financial advice. To help plan for RRSP season and the upcoming tax deadline, TD encourages customers to come in for an advice conversation and review their savings and investment portfolio. TD also offers a range of in-person and self-serve tools and resources, including a comprehensive Guide to help customers understand the differences and benefits of TFSAs and RRSPs, as well as a limited time offer (launched
About the Survey
Survey findings are based on an Ipsos poll conducted
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© Canada Newswire, source