10% of Canadians plan to max out new TFSA limit + MORE May 26th

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OTTAWA – The Harper government says it will explore giving people the option to pump more of their earnings into the Canada Pension Plan to boost their retirement savings.
The government will consult experts and stakeholders this summer as it looks for ways to allow Canadians to make voluntary add-on contributions to the Canada Pension Plan, Finance Minister Joe Oliver told the House of Commons on Tuesday.
“We believe that Canadians are best placed to decide how to save for their retirement with voluntary options,” Oliver said in a statement.
“That is why we intend to consult on giving Canadians the voluntary option to contribute more to the Canada Pension Plan to supplement their retirement savings.”
When it pays to take CPP early »
Oliver emphasized that people should have choices when it comes to their retirement savings, rather than mandatory payments.
He said the government aims to build on other voluntary savings options already available, such as the pooled, registered pension plan and the tax-free savings account…

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TORONTO – Ten per cent of Canadians surveyed in a new poll say they typically contribute the maximum amount to their Tax-Free Savings Account and will now invest $10,000.
The poll done for CIBC found an additional 17 per cent said they will try to increase their contributions above $5,500.
The federal government increased the annual contribution limit to $10,000 as part of the budget this year.
However, the poll also found that roughly 34 per cent of respondents said they either didn’t have the money to take advantage of the new $10,000 limit or had other investment plans.
The biggest TFSAs in Canada »

Breaking the figure down, 18 per cent of those surveyed said they would probably contribute less than the old limit of $5,500, while 12 per cent said they would not have enough savings this year to make a contribution. Four per cent said they would contribute to other saving plans.
Twenty per cent of those responding did not have a TFSA account and had no plans to open one, while seven per cent said they were now looking into opening one…

Witness the power of consumer backlash: Royal Bank of Canada announced today that it is reversing some of the new banking fees they planned to launch June 1. The lender, which is the largest in Canada, will not be implementing a “pay to pay” fee structure, which would have classified all account payments – including those made on mortgages, credit cards and savings contributions – as debit transactions. As a result, customers who didn’t have unlimited debit transactions as part of their banking plans would be charged a fee to make one of their regular payments – on top of the interest they were already paying.

Consumers were incredulous at the new fee structure, which was widely regarded as nickel and diming and double dipping by the bank. In addition to their complaints, the fees were widely covered in the media, and even prompted the NDP to approach Ottawa with a mandate to ban “pay to pay” altogether.

The pressure has paid off. The bank states on their website, “We had recently announced some changes, including making RBC loan and mortgage payments count toward monthly limits for free debit transactions…

A new survey says about one-third of Canadians don’t have the cash to maximize their tax-free savings accounts after the feds nearly doubled the amount account holders can contribute annually.

There’s something about this time of year that inspires self improvement – and that tends to be reflected in our financial habits, too. Whether you’re looking to buy a home (or update the one you’re in), alter your spending and savings habits, or reassess your affordability, there’s no time like the present. Check out this week’s lineup for everything you need to know about your fresh financial start.
4 Spring Renovation Projects To Do Now
They say Canada has two seasons: winter and construction! Planning to hire a contractor or undertake a few do-it-yourself projects for your home? Now is the perfect time – and there are some renos that are best tackled in the warmer months. Check out our list of top renos to make during the spring and summer.
Read Allan’s Blog | 4 Spring Renovation Projects To Do Now
Affording a Second Baby: The Real Estate Challenges
Starting a family is expensive enough in Canada – but for those living in our nation’s priciest housing markets, it can be even tougher financially, as many are priced out of larger living spaces…