A poll conducted for CIBC shows that about one in two Canadians will not take advantage of the higher Tax Free Savings Account (TFSA) contribution limits.

The survey of more than 3,000 randomly selected Canadian adults was conducted for CIBC by Angus Reid less than two weeks after the April 21 Federal Budget which raised the annual TFSA limit to $10,000 from $5,500. While 27% of the respondents said that the new limit would support their savings plans this year by allowing them to contribute more, 34% indicated that they did not have the money to top up their TFSAs and 20% said that they do not own a TFSA and had no plans to open one.

CIBC says that those aged 55 and over were more likely to be aware of the higher limit (84%) compared to younger Canadians aged 18-34 (55%). This older age group was also twice as likely as younger Canadians to say they typically contribute the maximum to their TFSAs, while those in their highest spending years (35-54) were least likely to contribute.

"It's encouraging to see Canadians are well aware of the increased TFSA limit, and that some are focused on increasing their contribution, though not everyone is able to," says Veni Iozzo, Senior Vice President, Deposits, GICs and Client Solutions at CIBC. "Awareness and intentions don't always translate into action, which is why creating a savings plan and following it is so important."