lTSX/NYSE/PSE: MFC SEHK:945
WATERLOO, ON, July 24, 2014 /CNW/ - According to the most recent
Manulife Investor Sentiment Index, a Tax Free Savings Account (TFSA) is
the favourite investment choice for Canadians. It has remained the
favourite choice since the Index began tracking it in December 2010.
Prior to the introduction of TFSAs, Registered Retirement Savings Plans
(RRSPs) were the most popular investment choice for the 15 years that
Manulife has been publishing the Index.
"TFSAs were created to give Canadians more choice for long-term
investments, and the index shows that they are clearly a hit and doing
the job Jim Flaherty intended them to do," said Marianne Harrison,
Senior Executive Vice President and General Manager, Canadian Division.
"In his last budget, Mr. Flaherty estimated that by 2030 the TFSA and
other registered plans would permit more than 90 per cent of Canadians
to hold all their financial assets in tax-efficient accounts. Our
survey shows this prediction has traction."
According to the Department of Finance, only three years after its
introduction, the TFSA has approached the RRSP in terms of contribution
flow even though TFSAs are drawn from after-tax dollars.*
TFSAs allow you to contribute up to $5,500 each year and enjoy tax-free
growth as long as the money remains inside the account. Further, money
can be withdrawn tax free. The federal government has also introduced
the Pooled Registered Pension Plan (PRPP). The PRPP is designed to
give 7.5 million Canadians who work in small and medium sized
businesses better access to a workplace savings plan.
Results from the Manulife Investor Sentiment Index show that Canadians'
preferences in saving vehicles are in order of preference, TFSAs,
RRSPs, Registered Educations Savings Plans (RESPs), Mutual Funds and
Segregated Funds. The Index also notes that Canadians rank investing in
their own home (58%) and paying down debt (29%) as their top financial
priorities.
About the Manulife Investor Sentiment Index
The Manulife Investor Sentiment Index is a semi-annual measure of
investors' views on a range of asset classes and savings and investment
vehicles, as well as their confidence in these areas. The index is
based on an online survey of 1,000 Canadians aged 25+ that was
conducted between May 14, 2014 - May 23, 2014 by Research House, an
Environics Company. A national probability sample of this size would
have a margin of error of +/-3.1 percentage points, 19 times out of 20.
*Tax Expenditures and Evaluations 2012: Part 2 - Tax-Free Savings
Accounts: A Profile of Account Holders, Department of Finance Canada.
About Manulife
Manulife is a leading Canada-based financial services group with
principal operations in Asia, Canada and the United States. Clients
look to Manulife for strong, reliable, trustworthy and forward-thinking
solutions for their most significant financial decisions. Our
international network of employees, agents and distribution partners
offers financial protection and wealth management products and services
to millions of clients. We also provide asset management services to
institutional customers. Funds under management by Manulife and its
subsidiaries were approximately C$635 billion (US$574 billion) as at
March 31, 2014. Our group of companies operates as Manulife in Canada
and Asia and primarily as John Hancock in the United States.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE,
and under '945' on the SEHK. Manulife can be found on the Internet at manulife.com.
SOURCE Manulife Financial Corporation
