Less than three months before Tax Free Savings Accounts (TFSAs) are set to hit the Canadian marketplace, a lack of knowledge about the accounts has fewer than half of Canadian adults planning to open one, according to a new survey sponsored by Investors Group.

The survey of 2,100 Canadians found that 46% plan to open a TFSA when it becomes available in January, and 17% plan to contribute the maximum amount of $5,000.

It found that 46% of respondents were either uncertain about how it worked, preferred to wait and see, or did not know; while 21% cited a lack of money as the reason they would not invest in a TFSA.

Canadians should take the time to inform themselves about the account, said Debbie Ammeter vp of advanced financial planning support at Investors Group.

“The TFSA presents Canadians with an opportunity to reduce taxes and use their savings with greater flexibility,” Ammeter said in a statement. “It’s worth learning more about the TFSA and incorporating it into your overall investment strategy.”

The poll found that more than three-quarters of those who plan to open a TFSA are driven to do so because they believe it will save taxes for them. But the survey also found that those quick on the uptake are already motivated savers: 58% plan to invest in a TFSA in addition to their RRSP.

In addition, 54% of those who have an RRSP or RRIF plan to open a TFSA, compared to only 31% who do not already have one of these registered plans.

Among people who plan to contribute to a TFSA, 30% say they will increase the amount they invest but 21% say the money will be diverted from RRSP contributions. Another 28% will transfer money out of current investments into a TFSA and 18% will use money normally invested in non-registered accounts.

Retirement savings proved to be the top priority for 65% of TFSA early adopters, with other purposes including saving for a vacation, tuition and a down payment on a house. Notably, younger adults aged 18 to 25 were more likely to use a TFSA to help them save for a down payment on a house at 25% compared to 6% across all other age groups. The younger age group was also more likely to invest to finance education at 22% compared to 8% across the other age groups.

A majority of Canadians plan to seek professional advice in their TFSA investments, with only 36% confident they can do it alone.

“The TFSA is a tactic that needs a strategy, and using an investment professional to explain the options is a great approach,” said Ammeter.

The Harris/Decima data were gathered between Sept. 18 and Sept. 24, and the corresponding margin of error is 2.1 percentage points, 19 times out of 20.