Huron-Bruce MP calls on federal government to save the Tax-Free Savings Account

Friday, Huron-Bruce MP Ben Lobb called on the federal Liberal government to leave the Tax-Free Savings Account (TFSA) limit at $10,000 annually to ensure fairness for seniors and working Canadians.

“In 2009, our Conservative government introduced the TFSA as an effective way to save money - tax free,” said Lobb. “Research shows that almost half of TFSA maximizers are seniors, so why is the Liberal Government so eager to decrease the contribution limit?”

Monday, federal finance minister Bill Morneau confirmed that the contribution limit on the TFSA will drop back to $5,500 from $10,000, effective Jan. 1, 2016. Lobb is sponsoring a petition both on-line and in his constituency offices, in an effort to stop the change in contribution limit.

The department of finance’s research shows that people of all ages and income levels max out their TFSA contribution limits – in fact, the vast majority are low- to middle-income earners, with a large proportion being seniors, said Lobb. Currently, 71 per cent of TFSA maximizers are over the age of 55, and 59.4 per cent of max contributors make less than $60,000. Support for the TFSA is consistent across age groups, income levels and regions of Canada.

The TFSA program is a way for individuals, who are 18 and older, with a valid social insurance number, to set money aside tax-free throughout their lifetime, said Lobb. TFSAs are an excellent retirement savings tool for seniors who can no longer take advantage of Registered Retirement Savings Plans (RRSPs), and also for young Canadians who need a tax-effective means of saving for their future.