Tax returns are arriving and Gen Z are the most likely to invest it: survey

A new survey from TD Bank found Gen Z are the most likely Canadians to invest their tax returns once received, but also may be unclear on how some savings accounts work.

Tax returns have already been going out to those receiving them after filing taxes and among those Canadians getting some of their money back, Gen Z are the most likely to invest it, a new survey has found.

The survey, released by TD Bank on Wednesday and conducted by The Harris Poll Canada last month, found 76 per cent of Gen Z Canadians expecting a return this year plan to invest it, much higher than the 60 per cent of millennials and 48 per cent of Gen X who said the same.

According to the survey, among those Canadians expecting a tax return, 53 per cent said they plan to invest it. The survey comes as fears of recession, economic uncertainty and the impact of the U.S.’s trade war continue to cast a stormy forecast for economies around the world.

In response to these concerns, the International Monetary Fund last week warned countries to “get your houses in order.”

Even though there’s a strong inclination to invest, the survey also found just 51 per cent of this group of Gen Z have a tax-free savings account — which are typically easier to access money from in an emergency than investments.

Among those who don’t have one, 30 per cent say they don’t know how TFSAs work.

“A TFSA isn’t just a savings account — it’s a gateway to long-term, tax-free growth,” said Pat Giles, vice-president for saving and investing journey at TD.

“For young Canadians, the earlier you start, the more powerful the impact. Even small, consistent contributions can build serious financial confidence over time, making sure your money is working as hard as you are.”