A Tax-Free Savings Account (TFSA) is one of the most liquid registered savings accounts. It allows you to withdraw your balance partially or completely, tax-free. Canadians have been using this flexibility and treating TFSA as a normal savings account for their immediate cash needs.
When you reach 50, retirement savings take priority over other things. Yet the TFSA fair market value of Canadians in the 50-54 age group was only $30,190 in the 2023 tax year, according to Canada Revenue Agency’s (CRA) latest TFSA statistics. That is 34% of the cumulative TFSA contributions of $88,000 in 2023.
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How much Canadians typically have in a TFSA by age 50
The $30,190 TFSA value was for 2023. But if we look at 10 years of data, Canadians typically have a TFSA balance of 35% of cumulative contributions by age 50. A major reason for the lower TFSA balance is probably consistent withdrawals.
| TFSA Statistics for Age 50-54 | 2013 | 2020 | 2021 | 2022 | 2023 |
| Avg Fair Market Value (FMV) | $11,043.88 | $24,422 | $28,611 | $26,479 | $30,190 |
| Average Contribution | $6,240.22 | $9,827 | $11,668 | $10,331 | $11,051 |
| Average Withdrawal | $5,237.90 | $8,669 | $9,986 | $10,219 | $11,413 |
| Cumulative Contribution (CC) | $25,500 | $69,500 | $75,500 | $81,500 | $88,000 |
| TFSA Balance/ CC | 43% | 35% | 38% | 32% | 34% |
If we look at the TFSA withdrawals, they were lower than the contributions until 2021. However, withdrawals increased or were in line with contributions in 2022 and 2023. The TFSA contributions spiked in 2020 and 2021 as people had a few things to spend on during the lockdown, and they received the Canada Emergency Response Benefit (CERB). The contribution fell, and withdrawal increased in 2022 when the lockdown ended, and consumption increased. This was the year of revenge travel, high inflation, and tech stock meltdown.
Canadians have been withdrawing their savings from their TFSA to meet short-term needs.
Why is that so?
TD Bank surveyed Canadians between October 24 and 27, 2025, and found that 39% of Canadians who have a TFSA are not investing the money in it. One core reason for it is to have funds readily available. That explains the lower balance and consistent withdrawals.
The TFSA savings trend of Canadians who turned 50 in 2023 shows they increased their contributions with time. And despite the withdrawals, their TFSA balance doubled in five years.
| TFSA Statistics for those who turned 50 in 2023 | 2013 | 2018 | 2020 | 2023 |
| Age | 40 | 45 | 47 | 50 |
| Avg FMV | $7,566.33 | $14,853 | $19,821 | $30,190 |
| Avg Contribution | $5,169.03 | $7,403 | $9,146 | $11,051 |
| Avg Withdrawal | $4,743.09 | $7,248 | $8,140 | $11,413 |
How to make the most of your TFSA
Even after consistent withdrawals, the average TFSA balance doubled in five years because the account allows your money to grow tax-free. It means that if you sell a stock for capital gain and reinvest that money to buy a new stock, you do not pay any tax. Had it been any other account, you had to pay tax. This tax-free compounding can help you build a million-dollar portfolio.
You don’t need too many stocks to invest in a TFSA. Only a handful of stocks that you are confident about can help you build wealth. The trick is to stay invested and keep investing for the long term.
Constellation Software (TSX:CSU) is a good TFSA growth stock to buy. It has generated 20% compounded annual growth rate in 10 years. Its share is currently trading closer to its three-year low as the artificial intelligence (AI) boom and management change sparked fear among investors.
The uncertainty around AI’s impact on traditional software has affected every software company. Many investors view this as a threat and are avoiding software. However, Constellation continues to acquire vertical-specific software (VSS) companies that operate mission-critical applications.
Constellation is interested in cash flows. On the one hand, VSS enjoys regular cash flow from maintenance fees. On the other hand, AI is yet to generate returns that can justify its huge investment and energy needs. Even though AI will be disruptive, it will have vertical-specific versions. Once AI proves to be a good return on investment generator, Constellation could tweak its acquisitions in vertical-specific AI companies.
Now is a good time to buy Constellation at its dip and lock in future growth rally.
