Skipped to content anchor
Back to The Learning Centre
The Learning Centre:

Happy New Year! Are these two financial updates on your radar?

What do Tax-Free Savings Accounts (TFSAs) and your pension have in common? They both welcomed some important updates effective January 1st.

UPDATE #1: The annual TFSA contribution limit has been increased from $5,500 to $6,000.

Whether you’re looking to build savings for an emergency fund, save for a down payment on a home, or create an extra financial cushion for retirement (in addition to your pension income)—being able to contribute more to your TFSA provides you with greater earning potential to realize your financial goals, faster.

If you haven’t been topping up those annual TFSA contributions, here is a guide to your cumulative contribution room as of January 1, 2019:

 Year   TFSA Annual Limit  TFSA Cumulative Limit
 2009 $5,000 $5,000
 2010  $5,000 $10,000
 2011  $5,000 $15,000
 2012  $5,000 $20,000
 2013  $5,500 $25,500
 2014  $5,500 $31,000
 2015  $10,000 $41,000
 2016  $5,500 $46,500
 2017  $5,500 $52,000
 2018  $5,500 $57,500
 2019  $6,000 $63,500
TFSA quick tips
  • Get into the habit of making TFSA contributions in January (versus waiting until later in the year) in order to capitalize on the earning potential of compound interest.
  • If topping up your TFSA all at once is too much of a strain on your budget, setting up pre-authorized contributions can make it more manageable by choosing how much you can afford to contribute and how often.
  • Plus, here are 3 more tips to truly maximize the benefits of a TFSA.

UPDATE #2: An Ontario Teachers’ Pension Plan (OTPP) inflation adjustment of 2.2% has been made for 2019.

If you retired prior to 2018, this means you’ll receive OTPP’s annual cost-of-living increase equal to 100% of the annual Consumer Price Index (CPI).

What is the CPI?

The CPI is a measure used to determine inflation rates based on a weighted basket of goods and services typically purchased by Canadian households each month (such as transportation, food, and medical care). A weight out of 100 is calculated and assigned by taking price changes for each item in the weighted basket of goods and averaging them.

If you retired in 2018, your first pension increase will be prorated from your last day of credit in 2018.

If you’re still years away from retirement, there are steps you should be taking now to put your finances on the right path to retirement.

While a boost in your pension payment and annual TFSA contribution limit both bode well for your bottom line, there is also a chance that 2019 will see further increases to interest rates.

If you have a mortgage and are carrying balances on loans or credit cards, this means that ‘paying down debt’ should be at the top of your list of financial resolutions. With 64% of Canadian mortgages up for renewal in the next 3 years (according to, you’ll need to ensure you’re financially well-positioned to take on higher monthly mortgage payments, without the burden of being bogged down with high-interest debt. Here is how to get ahead of rising interest rates in 2019.

Do you have specific financial goals for 2019 and beyond? Call on Educators Financial Group.

No matter where you are on the pay grid, or what your pension income is in retirement, we can work with you to develop a financial plan that is able to grow and adapt according to your needs, goals, and budget.

Let us put our educator-specific experience to work for you.


Back to Site