Two-thirds of CARP members are in favour of increasing the tax-free savings account (TFSA) contribution limit.
The support for increasing the TFSA limit is rooted in concern for adequate retirement income, and any measure that encourages it is favoured, the organization says.
TFSAs have particular value for retirees who can no longer contribute to RRSPs and for lower-income earners who do not benefit as much from tax-deductible RRSP contributions.
Earlier this week, two reports said a doubling of the TFSA contribution limit would cost the federal and provincial governments billions of dollars in lost tax revenue.
The arguments about budgetary costs are misplaced since it costs the same in foregone taxes whether we save in TFSAs or RRSPs or PRPPs,” says Susan Eng, vice-president, advocacy, for CARP. “So the question is whether we should be encouraged to save or not. CARP members say yes.”