Here’s the Average TFSA Balance at Age 44 in Canada

You can invest your TFSA in funds like the BMO Canadian High Yield Dividend ETF (TSX:ZDV) to grow the balance.

| More on:

The average TFSA/RRSP balance at a given age is a topic I’ve covered in The Motley Fool before. The topic is a popular one because many Canadians are interested in knowing how they stack up financially compared to their peers.

In one of my articles on the topic, I estimated the average TFSA balance at age 44. Using various examples from brokerages, banks and others, I arrived at an estimated range of $30,000 to $40,000. I was not able to find a source that quoted an exact number for Canadians precisely 44 years of age. I was hoping to find data tables from StatCan that had such information, but a Google search for “average TFSA balance age 44 in Canada” did not yield any government data.

However, after the article published, I was able to find a source with the information I wanted. Specifically, a Statcan report that listed average TFSA balances by age group, using first-party government data. This report gave a much narrower range and a much lower number than my original article did. So today, I’m revisiting the topic with the new data I’ve found.

Piggy bank with word TFSA for tax-free savings accounts.

Source: Getty Images

About $20,000

According to Statcan’s official TFSA data table for 2022 (the most recent contribution year for which data is available), the average TFSA balance at age 44 is about $20,000. The data tables, like the ones I looked at before, provided estimates for each age range than each specific age. However, this table had much narrower ranges, which allowed me to estimate $20,000 as the specific balance for 44-year-olds with a reasonable level of confidence. Here’s the specific data from the Statcan’s report:

  • Ages 40 to 44: $17,609.
  • Ages 45 to 49: $21,177.

As you can see, the average amount rises from age 40 to 49, with the average of the 40-44 and 45-49 age groups being just under $20,000. Logically, you’d expect the exact balance for 44-year-olds to be on the higher end for the range of 40 to 44, since Statcan’s table shows balances rising with age. For the same reason, you’d expect it to be on the lower end of the 45 to 49 range. So then, rounding up, the balance for age 44 is about $20,000.

How to increase your RRSP balance

If you’re looking at the figures above and feeling like you don’t measure up, there are two things you can do to increase your TFSA balance:

  1. Make more contributions.
  2. Invest wisely.

As far as making more contributions goes, that’s simply a matter of saving more. If you’re already contributing all you can afford, try to find areas in your budget you can cut from, or maybe take a “side hustle” to get more money coming in.

As for investing wisely, that means buying a diversified portfolio, such as an index fund.

Consider the BMO Canadian High Yield ETF (TSX: ZDV) for example. It’s a BMO exchange-traded fund (ETF) based on high yield Canadian stocks. It includes a lot of stocks in the banking, energy, and utilities sectors.

ZDV has a lot of qualities that make it a good TFSA holding.

First, it pays a lot of dividends (3.7% yield), which benefit from being tax-exempt.

Second, it is highly diversified, which reduces the risk in the holdings.

Third, it has a modest management expense ratio (0.4%), which means its investors don’t pay out too much to the fund’s managers.

All in all, investors who invest their TFSAs in funds like ZDV will probably see their balances grow.

Fool contributor Andrew Button has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Dividend Stocks

Canada’s Data-Centre Boom Needs More Than Chips: This TSX Stock Could Win

AI chips can’t do anything without massive buildings and power infrastructure, and Bird Construction is getting paid to build it.

Read more »

A family watches tv using Roku at home.
Dividend Stocks

This Dividend Stock Beats Telus and BCE for Income Investors

Telus (TSX:T) and BCE (TSX:BCE) are great turnaround plays, but don't expect results to happen anytime soon. For timelier opportunities,…

Read more »

man looks worried about something on his phone
Dividend Stocks

What’s Actually Going On With Telus’s Dividend?

Telus’s dividend cut is likely to strengthen its financial position and enable it to maintain a sustainable payout ratio.

Read more »

Person holds banknotes of Canadian dollars
Dividend Stocks

A 4.1% Dividend Stock to Buy for $50 Every Month

TC Energy (TSX:TRP) stock stands out as a great TFSA income bet this September.

Read more »

dividends grow over time
Dividend Stocks

4 Canadian Stocks That Keep Raising Their Dividends

These Canadian stocks are likely to deliver profitable growth and return more capital to shareholders through higher dividends.

Read more »

holding coins in hand for the future
Dividend Stocks

3 Dividend Stocks Built to Keep Paying Through Any Market Condition

These three dividend stocks offer reliable cash flow, and strong records of rewarding shareholders through changing markets.

Read more »

House models and one with REIT real estate investment trust.
Dividend Stocks

Your GIC Is Maturing: Here’s Where I’d Put $10,000 for More Income

When GIC rates fall, a grocery-anchored REIT like Crombie can offer higher monthly income with some growth potential.

Read more »

top TSX stocks to buy
Dividend Stocks

1 Canadian Dividend-Growth Stock Built to Deliver in Any Market Condition

Alimentation Couche-Tard (TSX:ATD) stock looks like a dividend-growth play that can do well in most climates.

Read more »