At age 60, most Canadians are either retired or counting down the final years to retirement. By this stage, the financial decisions you’ve made — especially with your Tax-Free Savings Account (TFSA) — can dramatically shape your lifestyle.
The TFSA remains one of the most powerful retirement tools available. Withdrawals are completely tax-free and, crucially, don’t trigger clawbacks on government benefits such as Old Age Security (OAS) or Guaranteed Income Supplement (GIS). That makes it uniquely valuable compared to Registered Retirement Savings Plans (RRSPs) or Registered Retirement Income Funds (RRIFs).
But here’s the eye-opening question: How does the average 60-year-old Canadian actually measure up?
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The $45,000 reality check
According to Statistics Canada data for 2025 (based on the 2023 contribution year), Canadians aged 60–64 had an average TFSA fair market value of $45,109. Even more striking? They had an average of $47,631 in unused contribution room.
That means the typical Canadian in this age group has more unused room than invested assets.
As a long-time investor, I see this as both concerning and full of opportunity. At 60, your TFSA should ideally be a mature, income-producing asset — not a half-used account.
Let’s look at the missed potential. If that unused $47,631 were placed into a conservative Guaranteed Investment Certificate (GIC) earning 3%, it would generate roughly $1,429 annually in passive income. That’s modest — but it’s still money that could help offset inflation or cover recurring expenses.
And that’s the ultra-conservative scenario.
Why the TFSA is built for more than GICs
The TFSA can hold far more than cash and GICs. Eligible investments include mutual funds, exchange-traded funds (ETFs), bonds, and individual stocks listed on major exchanges such as the Toronto Stock Exchange and the New York Stock Exchange.
For retirees following the 4% withdrawal rule, a TFSA portfolio generating 4-6% annually — with some growth — can provide meaningful, sustainable tax-free income. More importantly, growth above inflation increases purchasing power, which is critical when retirement could last 25–30 years.
This is where high-quality income-growth stocks can shine.
One example retirees could consider is Brookfield Infrastructure Partners (TSX: BIP.UN). The infrastructure business offers stable cash flows, and this partnership owns diversified global assets across utilities, transport, midstream, and data infrastructure.
Approximately 85% of its funds from operations (FFO) are regulated or contracted, with inflation protection embedded in many agreements. The company targets more than 10% annual FFO-per-unit growth and 5–9% annual distribution growth.
Consistency matters in retirement. This year marks Brookfield Infrastructure Partners’s 17th consecutive years of cash distribution increases. In 2025, it increased FFO per unit by 6.4% and raised its distribution by 5.8% in January this year.
At around $54 per unit, the yield sits near 4.6%. A move leading to a yield of above 5% during market pullbacks should trigger income investors to watch more closely.
The key takeaway isn’t to buy one specific stock. It’s that the TFSA can — and arguably should — be working harder than the average balance suggests.
What this average really tells us
The $45,109 average balance tells us two things:
1. Many Canadians are underutilizing one of the best tax shelters available.
2. There is still a meaningful opportunity — even at age 60 — to optimize retirement income.
At this stage of life, capital preservation matters. But so does intelligent growth. A thoughtfully constructed TFSA combining stable income, dividend growth, and some inflation protection can meaningfully enhance retirement flexibility — without increasing taxable income.
Investor takeaway
The average Canadian TFSA balance at age 60 sits at roughly $45,000 — with about $48,000 in unused contribution room. That gap highlights a missed opportunity.
While even conservative investments could generate extra passive income, the TFSA’s true power lies in its ability to compound tax-free through diversified investments such as ETFs and income-growth stocks.
For Canadians approaching or in retirement, maximizing this account isn’t optional — it’s one of the smartest financial moves you can make to protect and elevate your retirement lifestyle.
