Here’s the Average TFSA and RRSP at Age 40

At 40, the “average” TFSA and RRSP balances are lower than most people expect, mainly because few Canadians consistently max contributions.

Key Points
  • For ages 40–44, CRA pegs the average TFSA fair market value at about $18,842 (2023 contribution year).
  • Average RRSP balances for roughly ages 35–44 are often estimated near $49,000, with a median closer to $33,000.
  • Manulife can be a reasonable income-and-growth building block, but catching up mostly comes from saving more, not one stock.

At 40, money starts to feel louder. Kids cost real money, mortgages feel less “starter,” and retirement stops sounding like a far-off concept. Knowing the average Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) at this age gives you a simple benchmark. Not a grade, but a gut check. It helps you spot whether you need to press harder, change your mix, or just stop guessing and get a plan on paper. At this age, small course corrections can save you years later, because compounding rewards the early pivot more quietly, too.

pig shows concept of sustainable investing

Source: Getty Images

Where you fall

For Canadians aged 40 to 44, the Canada Revenue Agency (CRA) pegs the average TFSA fair market value at about $18,842 for the 2023 contribution year. That number surprises people because the lifetime TFSA room for long-time eligible Canadians has grown well past $100,000. The gap tells you something important: most people do not max it, even after a decade and a half of room piling up.

The TFSA average also hides a big spread. Plenty of households use the TFSA as a true investing account and let it compound, while others treat it like a flexible cash drawer for renovations, parental leave, or a job switch. That flexibility is the TFSA’s superpower, but it also explains why averages stay modest. If you want to be above average, consistency matters more than perfect timing.

RRSP numbers look bigger, but the same “average versus typical” issue applies. One common estimate puts the average RRSP balance for Canadians aged 35 to 44 at roughly $49,000. Meanwhile, the median sits closer to $33,000 in the same age range, which means many Canadians have less than the headline average. Also, remember the RRSP works best when you can claim a meaningful deduction today and withdraw at a lower tax rate later. If your employer offers matching, that is an instant return. If not, the TFSA may deserve first priority.

MFC

Manulife Financial (TSX: MFC) sits at the centre of what investors actually care about in 2026: steady cash generation, higher-for-longer rates, and capital returns that show up in your account. Manulife sells insurance and wealth products across Canada, the United States, and Asia, and it runs a large global wealth and asset management business. When markets wobble, it still collects premiums and fees, which gives it that “grown-up” feel many portfolios crave.

The past year gave investors a few clear signals. Manulife wrapped 2025 with record core earnings of $7.5 billion and core earnings per share (EPS) of $4.21, then boosted the quarterly dividend by 10.2%. It also leaned into buybacks, and it flagged a fresh normal course issuer bid that could retire about 2.5% of shares, on top of the shares it already cancelled under its prior program.

Looking ahead, the bull case stays pretty simple. If markets stay reasonably healthy and rates do not collapse, Manulife can keep compounding core results and keep handing capital back to shareholders. Valuation does not look stretched on the surface either, with trading at 16.5 times earnings alongside a trailing dividend yield just under 5%. The main risks live in the usual places for insurers. Market swings can hit reported earnings, and credit losses or a sharp slowdown could pressure some product lines, even if core earnings stay steady.

Bottom line

So, could MFC help someone “catch up” to the average TFSA and RRSP at 40? Possibly, but only in the right role. The dividend can support disciplined, automatic investing, and the company has been acting shareholder-friendly. In fact, here’s what just $15,000 could bring in.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
MFC$50.35297$1.85$549.45Quarterly$14,953.95

Still, no single stock fixes a savings gap. If you are behind, the real lever is the contribution rate and time in the market. MFC can be a reasonable building block for steady income and potential growth, but you still need the habit that makes averages irrelevant.

Fool contributor Amy Legate-Wolfe 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.

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