By the time most Canadian investors hit age 45, they begin taking a closer look at their Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs). Those accounts form the backbone of long‑term savings, and this is often when investors assess whether they’re on track.
That’s a mid-career checkpoint of sorts. By age 45, most are well into their peak-earning years, contribution room has accumulated, and compounding has had a decade or more to start churning.
Understanding what the typical 45-year-old Canadian has saved can help investors benchmark their own progress.
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How much a typical 45-year-old has in a TFSA
The TFSA has become one of the most flexible and widely used savings tools in Canada. That’s because the account offers generous annual contribution room and significant tax-free benefits to investors.
Despite those advantages, TFSA balances can vary dramatically depending on how consistently someone has contributed over the years. Some figures show that Canadians aged 40 to 49 hold an average TFSA balance in the mid-$30,000 range, while the median balance is lower, closer to the low $20,000s.
The gap between average and median reflects a harsh reality: many households still have unused contribution room. While the reasons for this can vary, the one key factor is that it’s leaving money on the table that could be compounding tax-free for decades.
Market performance also plays a role. A 45-year-old who has steadily invested in long-term dividend payers may see a higher balance thanks to that compounding effect.
A trio of great options to accelerate that goal are Enbridge (TSX: ENB), Bank of Nova Scotia (TSX: BNS), and Fortis (TSX: FTS). This trio offers decades (and in the case of Scotiabank, over a century) of reliably paying dividends.
Additionally, these three stocks also offer significant defensive appeal to investors that is hard to match. Specifically, the sheer necessity of Enbridge’s energy infrastructure, Fortis’ unmatched utility moat and Scotiabank’s reliability are hard to beat.
In short, this trio of holdings is common in TFSAs because they offer a mix of stability and tax-free growth, making them appealing for mid-career investors looking to build wealth efficiently.
How much a typical 45-year-old has in an RRSP
Turning to RRSP balances, the balances involved tend to be higher. A key reason is that contributions are tied to income, and many employers aggressively manage and promote these programs.
For Canadians aged 45, the average RRSP balance typically falls in the $110,000 to $130,000 range. Like the TFSA number, the median is lower, showcasing the broad savings levels across households. The median in this case is between $70,000 to $80,000.
RRSPs are often used for longer-term, buy-and-hold investments. In fact, it’s not uncommon to see the same trio of Enbridge, Fortis, and Scotiabank within RRSP accounts.
The reasons for that are the same. Steady growth, a reliable history of paying dividends, and significant defensive appeal. These types of holdings help RRSP investors build a foundation of stability and long-term compounding.
What a balanced portfolio with TFSAs and RRSPs looks like
The typical 45-year-old Canadian investor with both TFSAs and RRSPs may have a combined savings total in the region of $90,000 to $150,000, depending on income and contribution levels.
Within that total, a balanced portfolio could easily include a mix of the trio of stocks mentioned above. Together, these three stocks form a realistic snapshot of what many Canadians hold: reliable dividend payers that compound steadily over time.
TFSAs and RRSPs offer savings opportunities to investors of all ages. Those Canadian investors approaching the age of 45 worried about the level of their savings should note that they still have two solid decades of compounding.
Enbridge, Fortis, and Scotiabank can provide ample compounding opportunities to grow that nest egg, as part of any long-term, well-diversified portfolio.
