Sun Life Financial today announced plans to offer its customers and group plan sponsors a number of opportunities to take full advantage of the new Tax-Free Savings Account (TFSA).

Starting Jan. 1, 2009, any Canadian resident over age 18 can contribute up to $5,000 each year into a TFSA. Interest is earned tax-free and funds are accessible at any time and not taxed on withdrawal.

Sun Life says it will offer the TFSA investment option to retail clients through accumulation annuities and GICs, and through its SunWise Elite suite of segregated funds.

Employers with Sun Life group plans can also choose to make TFSA options available to their employees.

“The TFSA is the most significant incentive for Canadians to save since the introduction of Registered Retirement Savings Plans (RRSPs),” says Dean Connor, president, Sun Life Financial Canada.

“According to our research, a significant number of Canadians said that they worry about paying for health care costs in retirement, but the majority of individuals have not planned for it,” said Connor. “We know the increasing cost of health care is a concern for Canadians, and the TFSA can be a powerful incentive to help people plan for health costs in retirement.”

The TFSA is a tax effective savings vehicle that can allow Canadians to save for future needs, including health care plan premiums and expenses. Sun Life Financial will offer clients a number of options for the upcoming TFSA, both at home and at work.