Here’s the Average TFSA and RRSP for a 40-Year-Old in Canada

At 40, the “average” TFSA and RRSP balances are lower than you think, and a consistent compounder can help you catch up.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published January 20, 9:30 pm EST

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Key Points

Canadians aged 40–44 averaged about $20,670 in TFSA value and $62,618 unused TFSA room, while ages 35–44 averaged $49,014 in RRSPs.
Dollarama can compound through value-focused spending, steady store expansion, and aggressive share buybacks.
The main risk is its rich valuation, so any slowdown or international missteps could hit the stock hard.

You hit 40 and the money questions start talking back. Kids cost more, time moves faster, and retirement stops feeling like a far-off rumour. Averages do not set your fate, but they do give you a gut-check and a benchmark. The CRA’s Tax-Free Savings Account (TFSA) statistics for the 2023 contribution year put the average TFSA fair market value for Canadians aged 40 to 44 at about $20,670, with average unused TFSA room near $62,618.

Meanwhile, the average Registered Retirement Savings Plan (RRSP) balance for Canadians aged 35 to 44 is at about $49,014. That gap matters, as the median reflects “most people,” while the average gets pulled up by super-savers. So, how can you get up to those super-saver levels?

Middle aged man drinks coffee — Source: Getty Images

DOL

Dollarama (TSX:DOL) fits that investment profile better than most people expect. It sells low-priced essentials and small “treat yourself” items, and that mix tends to hold up when budgets feel tight. When shoppers trade down, traffic often increases. It also benefits from scale, as it can spread costs across a big store base and keep prices sharp.

It also keeps a simple growth lever running in the background: it opens stores. More stores mean more convenience, more transactions, and more data on what customers buy. It leans into consumables, which pulls customers back frequently. That repeat behaviour makes revenue steadier than at retailers that depend on big-ticket splurges.

The market has rewarded that steadiness. Dollarama shows a roughly 43% gain over the past year. That run tells you investors still pay up for consistent execution, especially when the economy feels choppy and consumers chase value. It also raises expectations, which matters for anyone buying today.

Earnings support

Those expectations met strong numbers in the latest quarter. In fiscal 2026’s third quarter, Dollarama reported sales of $1.9 billion, up 22.2% year over year, and net earnings of $321.7 million. Diluted earnings per share (EPS) came in at $1.17 versus $0.98 the year before. Comparable store sales in Canada rose 6%, driven by more transactions and a bigger average basket. That combination signals demand, not just store growth.

It also leaned hard into capital returns. Dollarama repurchased about 2.6 million shares for roughly $484.6 million during the quarter. It also reported that management lifted its annual comparable sales forecast, which suggests momentum can continue. Beyond Canada, it owns a stake in Dollarcity and it now runs an Australian retailer The Reject Shop, which could add runway if execution stays sharp, but it can also add costs and distractions.

Therefore, valuation still matters, especially inside a TFSA where you want long-term winners but you also want to avoid paying any price. Right now, it holds a $54.7 billion market cap, while trading at 42.6 times earnings. That multiple assumes continued delivery. If inflation cools and shoppers drift back to pricier retailers, growth could cool. If competition turns into a price fight, margins could tighten. And if international initiatives disappoint, the stock could re-rate lower fast.

Bottom line

For a 40-year-old trying to build a bigger TFSA and RRSP balance, Dollarama offers a clean, understandable path. It can perform across cycles, it can add stores, and it can support per-share growth with buybacks. It also carries real risks, led by valuation and the need to execute abroad while defending margins at home. Dollarama gives you a proven compounding business, as long as you keep your time horizon long and your contributions steady.