If you’re 45 and feeling like your Tax-Free Savings Account (TFSA) balance could use a boost, you’re definitely not alone. According to recent figures, the average Canadian aged 45 to 49 has about $21,177 saved in their TFSA. That might seem a little underwhelming, especially if you haven’t contributed regularly or had investments that just didn’t perform. But here’s the good news: you still have around two decades before retirement. With some smart choices and a little discipline, you can absolutely catch up and even surpass the average.
Source: Getty Images
Buy blue
One of the most effective ways to make the most of your TFSA is to focus on dividend-paying blue-chip stocks. These are companies that have been around the block, pay reliable dividends, and usually have a long track record of growing both earnings and payouts. And better yet, dividends earned in your TFSA are tax-free. That means you get to keep every dollar working for you, with no surprise tax bill at the end of the year.
A great stock to consider for this kind of strategy is Canadian Imperial Bank of Commerce (TSX: CM), also known as CIBC. CIBC is one of Canada’s Big Five banks and has a reputation for steady, reliable performance. As of writing, it’s trading around $88 and paying out an annual dividend of $3.88, giving it a yield close to 4.42%. That’s a pretty generous yield, especially when you consider the bank’s solid fundamentals and long history of rewarding shareholders.
Supporting your growth
Let’s break that down in terms of what it could mean for your TFSA. Say you have $15,000 to invest, and you decide to go all-in on CIBC shares. If you reinvest those dividends and continue to make regular TFSA contributions (which max out at $7,000 in 2025), your money starts compounding faster than you’d think. Over 10 years, even modest returns could snowball into a six-figure portfolio.
Of course, you don’t need to bet it all on one stock. However, having a reliable core holding like CIBC makes a lot of sense. It gives you cash flow to reinvest, helps cushion market downturns, and has the potential for price appreciation, too. Plus, banks like CIBC tend to benefit from rising interest rates over the long run, which can boost their margins and earnings.
CIBC is also embracing innovation. The bank has been integrating more artificial intelligence (AI) into its operations to improve customer service and efficiency. It’s made real progress in boosting client satisfaction, and the digital transformation it’s pushing through could help it stay competitive in a rapidly changing banking world. When you’re looking to hold a stock for the long haul, you want to know it’s future-ready and CIBC is making the right moves in that direction.
Bottom line
Catching up to the average TFSA balance and then going beyond is more doable than you might think. The key is to start now. Whether you’ve got $5,000, $15,000, or just a few hundred dollars to invest, what matters most is getting that money working for you in quality stocks like CIBC. Stick to a plan, reinvest your dividends, and keep contributing. Over time, the magic of compounding will do the heavy lifting.
