Risking No Returns? 4 in 10 Young Canadians Missing Out on TFSA Growth: TD Survey
While Gen Z and Millennials are eager to invest, lack of confidence and understanding may be holding them back
TORONTO, Nov. 12, 2025 /CNW/ - A new TD survey finds that while many young Canadians are eager to grow their wealth, a surprising number could be leaving money on the table when it comes to their Tax-Free Savings Accounts (TFSAs). According to the poll, four in 10 (41%) Gen Z and Millennial Canadians admit they aren't investing the money held in their TFSAs.
While 65% of Canadians surveyed hold a TFSA, 39% of them are not investing the money inside it – rising to 41% for both Gen Z and Millennials. According to the poll, the top reasons these two generations give for not investing within their TFSAs include:
- wanting the funds to be readily available (27%);
- feeling they have not saved enough to invest (22%);
- not knowing what investment products to choose (22%) and;
- not feeling confident in their investment knowledge (19%).
"Many Canadians understand the value of saving, but fewer seem to recognize the importance of investing those savings within their TFSA," said Pat Giles, Vice President, Saving and Investing Journey at TD. "Simply parking cash in a TFSA limits its potential and, in some cases, could lead to contribution penalties if used like a regular savings account. Even small, consistent investments can help Canadians maximize the full tax-free potential of their TFSAs."
The survey also revealed that Gen Z Canadians face bigger confidence gaps than older generations when it comes to investing, even if they already have a TFSA:
- Gen Z are more likely to have opened a TFSA because it felt like a simple first step (40% compared to 30% of other Canadians) and many intend to invest within the next year (25% Gen Z vs. 17% of other Canadians).
- Still, two in five (40%) Gen Z Canadians say they don't feel confident when to use a TFSA versus an RRSP, and one in three (32%) aren't sure they've chosen the right type of account to meet their financial goals.
- Among Gen Z Canadians who don't have a TFSA, nearly three-quarters (74%) say a lack of knowledge about the account is their biggest barrier, which is significantly higher than the national average of 52%. 35% of Gen Z aren't sure where or how to begin, while 25% have limited understanding of the benefits and 16% find investing too complicated.
"Sitting down with a financial professional can help young Canadians create investing plans that reflect their unique goals and support them in building confidence in their future," said Giles. "No amount is too small to start investing and starting early could build lifelong habits that allow your money to grow – and TFSAs can be a powerful tool to leverage."
About the TD Survey
This TD survey, conducted by Léger, ran from October 24th to October 27th, 2025, with a nationally representative sample of 1,500 Canadian adults. The results have been weighted by age, gender, and region (and in Quebec, language) to match the population, according to Census data. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of ±2.5%, 19 times out of 20.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 28.1 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world's leading online financial services firms, with more than 18 million active online and mobile customers. TD had $2.0 trillion in assets on July 31, 2025. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto Stock Exchange and New York Stock Exchange.
SOURCE TD Bank Group
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