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COVID pandemic boosts Canadians’ savings focus

Focusing more on TFSAs, the study found that 56% of Canadians have cash in TFSAs, and 29% said they hold three quarters in cash. And while 73% of Canadians believe they have knowledge of TFSAs, only half (49%) are aware that a TFSA account can hold cash and other assets.

The survey found Canadians receiving an average of $34,917 in TFSA, a 13% increase from 2020, despite the impact of the ongoing pandemic.

The research also found that Canadians primarily use their TFSA accounts for a variety of financial goals, including achieving retirement (44%) and early financial independence (15%); Another 43% use their TFSAs as savings accounts.

When it comes to contribution constraints, lack of funding (41%) and other costs (32%) emerged as the biggest constraints. The share of Canadians who did not contribute due to pandemic-related causes also dropped from 10% to 7%.

Nicole Ove, Head of Retail Investments at BMO, said: “During the uncertainty of the pandemic, Canadians remain resilient and optimistic – continuing to prioritize savings and contribute to their TFSAs. 2022 With rising inflation and economic uncertainty the new It is likely to bring challenges as the pandemic continues in another year.”

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