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Will the tax-free savings account’s expansion only help the rich? That seems to be the popular belief, but the middle class may in fact be the biggest beneficiaries of all.

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Tax-free saving account limits weren’t doubled, as many expected, but the 82% increase in annual contributions has the potential to change financial planning forever





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It might not be that noticeable for a few years, but crunch the numbers and there is strong evidence it will make retirement immensely better, especially for those under 50.

We decided to contrast a “with” and a “without” scenario, now that the Harper government has expanded TFSA contribution room significantly to $10,000 per person per year, for an average middle-class couple.

The definition of middle class is not that easy to identify. We chose a couple earning $80,000 each per year. (There were 111,000 people on the Ontario Sunshine list making $100,000 plus before pensions, so we picked a figure meaningfully lower than that.)