If you’re 45 and wondering whether your TFSA (Tax-Free Savings Account) and RRSP (Registered Retirement Savings Plan) are on track, here’s the honest answer: most Canadians at your age have about $20,000 in their TFSA and $70,000 in their RRSP, which is not enough for retirement.
The good news? There’s still time to close the gap, and putting that capital into the right stocks can make a meaningful difference.
One name worth considering right now is TerrAscend Corp. (TSX:TSND), a cannabis company generating consistent free cash flow (FCF) and trading at what its own management calls a significantly undervalued price.
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What the average Canadian has saved at 45
Let’s look at the real numbers first.
- According to Statistics Canada data, the average TFSA holder aged 45 to 49 had between $20,000 and $21,200 in their account as of 2023. Since balances tend to rise with age, $20,000 is a reasonable estimate for someone right at 45.
- For RRSPs, the median balance for holders aged 45 to 54 was roughly $70,000 to $72,600. Again, $70,000 is a fair benchmark for a 45-year-old specifically.
- Put those two together, and the typical Canadian at this stage has about $90,000 spread between the two accounts.
That sounds decent. But consider this: the average Canada Pension Plan (CPP) payment is around $800 per month. Add Old Age Security (OAS) at roughly $740 per month, and you’re still well short of covering rent in Toronto or Vancouver, let alone living comfortably. The math is uncomfortable, but it’s the reality.
That’s why what you put inside your TFSA and RRSP matters as much as how much you contribute.
Is this TSX cannabis stock undervalued?
Valued at a market cap of $300 million, TerrAscend cultivates, produces, and sells cannabis products in Canada and the United States. TerrAscend is a multi-state cannabis operator focused on the northeastern United States: New Jersey, Maryland, and Pennsylvania.
While most Canadian cannabis companies are wrestling with negative profit margins, TerrAscend is reporting a positive free cash flow. In 2025, it reported revenue of $261 million with gross margins of over 52%. Its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) stood at $67.8 million, indicating a 26% margin.
TerrAscend also generated $25.3 million in free cash flow, and this figure is forecast to surpass $60 million in 2027. If the cannabis stock is priced at 10 times forward FCF, it could more than double over the next 12 months. This kind of consistency is rare in the cannabis sector, which has been littered with cash-burning operators for years.
A focus on growth
In Pennsylvania, TerrAscend has reactivated six additional cultivation rooms, which management says will increase total flower output by roughly 50%. The first harvest is expected in April 2025, with products available for sale by June.
Pennsylvania is also a potential adult-use conversion state. If that happens, TerrAscend’s already-built large-scale cultivation and manufacturing facility puts it in pole position to capture that demand immediately.
In New Jersey, it recently acquired Union Chill, expanding its retail footprint to four dispensaries and plans to reach the state’s maximum of 10. Management believes it entered 2026 as the state’s highest-grossing retailer.
Meanwhile, in Ohio, TerrAscend is patiently waiting for valuations to come down before making acquisitions — a level of discipline that long-term investors should appreciate. As CEO Ziad Ghanem put it on the earnings call: “What cost $1 today will cost $0.70 tomorrow.”
The Foolish takeaway
For a 45-year-old Canadian with $90,000 across their TFSA and RRSP, the goal is straightforward: to grow that balance meaningfully over the next 15 to 20 years before retirement.
TerrAscend offers something rare in a speculative sector: real earnings, real cash flow, and a management team that buys back its own shares rather than diluting investors. The TSX cannabis stock is thinly followed and, by the company’s own admission, undervalued.
It won’t be right for every investor. Cannabis still carries regulatory and market risk. But for those with a higher risk tolerance and a long runway, TerrAscend looks like a compelling bet to put your TFSA and RRSP dollars to work.
