Business · Economy · 10 hrs ago
Canadians withdrew nearly $70-billion from TFSAs in 2024
In Canada, account holders withdrew nearly $70-billion from TFSAs in 2024, according to the latest available tax agency data.
A Tax-Free Savings Account lets people save and invest without paying tax on investment gains or withdrawals, as long as they follow the contribution rules.
Younger holders withdrew more often, with about one-third of people aged 25 to 45 making withdrawals.
Many people in those years face large costs such as housing, childcare and raising children, which can make savings useful.
Older holders took out larger sums on average: people aged 80 and over withdrew about $31,000 each.
TFSA withdrawals are tax-free income, making these accounts a useful source of money in retirement, unlike withdrawals from some other registered retirement accounts.
Money needed within five years should generally be kept in a safer place than stocks, which can take years to recover from a market fall.
Canadians withdrew nearly $70-billion from tax-free savings accounts (TFSAs) in 2024, while contributing about $123.5-billion.
Nearly 32 million withdrawals were made, compared with almost 175 million contributions.
About one-third of TFSA holders aged 25 to 45 made withdrawals, often amid high household expenses.
Older account holders withdrew larger average amounts, with those aged 80 and up taking out an average of $31,000.
The article says TFSAs can also provide retirees with non-taxable income.
- Who
- Canadian TFSA holders, including younger households and retirees.
- What
- They withdrew nearly $70-billion from TFSAs in 2024.
- When
- 2024, the most recent year for which Canada Revenue Agency data was available.
- Where
- Canada.
- Why
- Younger households may use withdrawals for expenses such as home down payments, mortgages and child care; the article also describes TFSAs as a source of retirement income.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- TFSA withdrawals
- Nearly $70-billion in 2024
- TFSA contributions
- About $123.5-billion in 2024
- Number of withdrawals
- Almost 32 million in 2024
- Average withdrawal
- $12,292 per individual in 2024
- Average withdrawal, ages 80 and up
- $31,000 in 2024