Another $7,000 Can Be Added In January. | Tax Free Savings Accounts | Discussion forum

The 2025 raw TFSA dollar limit is $7,044.00. Need rise to $7,250 at least to have $7,500 dollar limit. Need inflation to be 2.93% or more for that.

Dean said
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Thanks Norman and Cgouimet ⬆️

It looks like we've got a while to wait (years), for the contribution limit
to be bumped to $7.5K.

Dean

  

If current average Oct-Sep of 1.96% repeats itself through Sep 2026, $7500 in 2027 ...

UkrainianDude said
In the UK Sipp (like rrsp ) you can contribute up to 100% of income (vs 18 % in Canada ) and available to contribute up to 6k cad a year even if you earn no earned income at all! In Canada only work income. Also when you withdraw at 55 , 25% is tax free. Canada is 100% tax from first dollar.

In the UK Isa like tfsa has limit of about 35k a year contribution, Canada is a tiny 7k. Even if it resets each year you can accumulate much more tax free in UK.  

Until 2024 UK had maximum lifetime allowance for pensions/sipp assets. If you accumulated over ~1M GBP then youd were hit with higher taxes on withdrawals, so that served as an effective barrier to stop people from contributing the max over working life.

Now they cancelled LTA, so the rules are unusually generous. That said, high earners have a much lower SIPP contribution limit at just 10K GBP.

ISA is not as flexible as TFSA. Once you withdraw, the room is lost permanently. Still more generous, I agree.

The downside in Britain is the stamp duty they charge every time you buy shares. Their trading platforms are not as good, and the choice of ETFs is relatively poor.

hwyc said
We didn't get $7,500 for 2026
... I think we will get $7,500 for 2027 ... watching for early bird offers  

With average inflation Oct 2025 to Sep 2026 at 2.60%, it will be $7500 ($7372 rounded to nearest $500) for 2027 ...

Dean said
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Fingers Crossed ⬆️
Dean  

$7500 ($7372 rounded to nearest $500). It's a simple calc...

Dean said
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No one's questioning the calc ⬆️❗

It's whether it will Really happen ... it's a "Wait An' See".

See you in Jan. '27.

O & O,
Dean  

OK!

Not only HIS.ca engages in macro analysis, so does The Globe and Mail (theirs is for CPP)

https://www.theglobeandmail.co.....to-expect/

Oh hi, there. The air is getting colder, the days are getting shorter, and the end of the year is creeping up faster than I’d like to admit. But an upside to the calendar racing toward December is that we’re getting a clearer picture of how much government benefits, including Canada Pension Plan payments, could increase next year. And for retirees, there may be some good news. Let’s get into the numbers.
On the up and up

I would never claim to be an oracle, but I can tell you with a high degree of confidence how much CPP payments will rise in 2027.

First, a quick refresher for the uninitiated. CPP payments are adjusted every January to account for inflation. The government looks at how much prices have changed, using Statistics Canada’s Consumer Price Index, over the 12 months ending in October compared with the previous 12-month period. The idea is to help ensure retirees’ pension payments keep pace with the rising cost of living.

Jason Yee, principal financial analyst at Finepoint Solutions Inc. in Saskatoon, estimates that CPP payments will increase by – drum roll, please – 2.7 per cent in 2027 for Canadians already receiving benefits.

That’s a noticeable jump from the 2-per-cent increase in 2026 and slightly higher than the 2.6-per-cent bump in 2025.

I first spoke with Yee before September’s inflation numbers came out earlier this week. At the time, he was forecasting a 2.6-per-cent increase. But after Statistics Canada reported that annual inflation had climbed to 3.1 per cent in September, he nudged his estimate up to 2.7 per cent.

There’s still one more inflation data point to come before the official adjustment can be calculated, but Yee doesn’t expect the final number to change much.

That increase might feel like a nice perk, but it’s just a reflection of higher costs pensioners have already been shouldering for essentials such as groceries or gas.

When he worked as a financial planner, Yee said he told his clients not to think of the increase in CPP payments as a boost to their retirement income, since rising prices could eat up much of those gains.

“Whatever you gain here, you might lose there. It just sort of comes out in the wash,” he said.

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