OTTAWA, Feb. 27 /CNW Telbec/ - Finance Minister Jim Flaherty has proposed
a new Tax-Free Savings Account (TFSA). The TFSA is a flexible, registered
general-purpose account that will allow Canadians to save and earn tax-free
investment income. This income may be used anytime to cover any expense,
including dental care.
Canadian Dental Association (CDA) President, Dr. Darryl Smith says the
government deserves praise for creating this powerful incentive for financial
savings. "73% of Canadians do not have a plan for how they will pay for their
dental care once they retire. The Federal Government can play an important
role in ensuring that seniors have access to quality oral health care by
creating financial incentives to savings."
Adds Dr. Smith, "At a time when a record number of Canadians are reaching
retirement age, employer-sponsored, post retirement health benefits are in
sharp decline. Today's seniors are accustomed to superior dental care, and
have far more of their natural teeth than their predecessors."
57% of Canadian organizations surveyed in 2006 plan to reduce
post-retirement health care benefits over the next three years. Several of
Canada's large corporations have already made announcements to do just that,
including Nortel, Sun Life, Bell, Sears, and Manulife Financial. Of those
Canadians surveyed by the CDA who say they do have a plan for how they will
pay for their dental care once they retire, 62% are relying on post-retirement
benefits offered by their employer.
However, while the RRSP signaled to Canadians the need to earmark money
specifically for retirement, the TFSA does not have a similarly implicit
"It is imperative that Canadians realize that employer benefit plans may
not be available in their retirement years. The TFSA can be an important tool
while planning for your future oral health care needs." Says Dr Smith.
For further information:
For further information: Aaron Levo, (613) 263-4548