Turning 40 brings its challenges. Many who ignored their health start realizing its importance and adopt a healthy lifestyle. You might have a mortgage, a higher income, and a better understanding of finances. You know you are losing money by keeping your money invested a guaranteed investment certificate (GIC) that offers 3–3.7% interest. It is time to pump up your Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP).
Average Canadian TFSA and RRSP balance at age 45
Statistics Canada does not give the TFSA and RRSP stats for age 45, but it gives the breakdown for an age range.
For the age group 35–44, Canadians had an average TFSA balance of $10,743 and an RRSP balance of $27,416 in 2023. If your savings align with the average, you know where you stand among other Canadians. However, being average is not enough. You still have time to go above average and pump up your investments.
Because if you look at the RRSP balances of the 45–54 age group, it rose to $48,374, while the TFSA balance hardly moved to $10,048. You can see that RRSP contributions increased as they can be deducted from taxable income.
| Age Group | TFSA Balance | RRSP Balance |
| 35–44 | $10,743 | $27,416 |
| 45–54 | $10,048 | $48,374 |
At age 45, how much should you contribute to a TFSA and RRSP?
Average Canadian TFSA and RRSP contribution at age 45
According to Statistics Canada data from the 2023 tax filing, tax filers in the age group of 35 to 44 had a median TFSA contribution of $3,300 and an RRSP contribution of $3,600. For the age group 45–54, these median contributions increased to $5,200 for a TFSA and $4,330 for an RRSP.
| Age Group | TFSA contribution (2023) | RRSP contribution (2023) |
| 35–44 | $3,300 | $3,600 |
| 45–54 | $5,200 | $4,330 |
Since you are at the cusp of the two age groups, you can compare your contributions and accelerate them to remain above average.
What type of TSX stocks to buy through a TFSA and RRSP
Both the TFSA and RRSP allow your stocks to grow tax-free, which means you can sell the stocks and use the proceeds to buy another stock without incurring a capital gains tax.
Growth stock
Consider high-growth stocks in a TFSA, as it also makes your capital gains tax-free. Bombardier (TSX:BBD.B) is a good growth stock to buy in your TFSA. Its stock price fell as there was uncertainty about how Trump tariffs would impact its US$465 million order from the United States Air Force for eight Bombardier jets. However, Bombardier is exempted from tariffs under the United States-Mexico-Canada Agreement (USMCA).
The business jet maker’s share price is rising in the run-up to the first-quarter earnings and 2025 Investor Day presentation on May 1. Moreover, Bombardier’s next-generation Global 8000 aircraft manufacturing is progressing as planned. The company’s secular growth trend of new business jet demand and maintenance of business jets in use remains intact. The stock could give strong double-digit growth in the next two years.
Dividend stock
RRSP withdrawals are taxable, which means you are better off withdrawing small amounts. You can consider dividend stocks for an RRSP, which can give monthly payouts that will be added to taxable income.
CT REIT (TSX:CRT.UN) can give you an average 6% annual yield and grow distributions annually by 3%. Its distributions are safe as its payout ratio is 75%, and the REIT has been reducing this ratio. The REIT enjoys the privilege of first offer to buy or develop a Canadian Tire store. Since Canadian Tire is its parent, the REIT need not worry about occupancy. Also, a longer lease reduces its worries about occupancy.
Such an inflation-adjusted monthly passive income is a good fit for an RRSP.
