A Tax-Free Savings Account (TFSA) average can tell Canadians two useful things at once: where people roughly stand, and how much room there still is to improve. It is a benchmark, not a verdict. If your balance is below average, that does not mean you are failing. If it is above average, that does not mean you are finished. What it really shows is whether your TFSA is acting like a proper investment account or just a parking spot for cash. For Canadians aged 55 to 59, the average TFSA fair market value was $37,600 in the CRA’s latest age-group data for the 2023 contribution year.
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What that says (and doesn’t)
That number is useful, but it does not tell the full story. An average includes people who started early, people who barely contributed, and people who withdrew money along the way. It also does not tell you whether the money was invested well. Two people can both have $37,600 in a TFSA at 55, but one may be growing it with strong stocks while the other is leaving it in cash and hoping for the best.
It also cannot tell you what you “should” have without knowing your retirement goals. Still, if you want a rough target, the average at 55 is probably not enough on its own for retirement. A useful way to think about it is this: if someone wanted roughly $20,000 a year from a TFSA alone using a 3.9% withdrawal rate, they would need about $513,000 invested. For $40,000 a year, it would be about $1 million. That is why the average TFSA balance at 55 looks more like a good start than a finish line.
The good news is that catching up is still very possible at 55. This is the stage where consistency matters more than perfection. Maxing contributions, reinvesting dividends, and holding quality businesses can still make a huge difference over the next decade. A TFSA does not need to become enormous overnight. It just needs to keep working, which is why a dependable compounder can be so valuable.
Consider L
That brings us to Loblaw (TSX:L). It owns grocery stores, drugstores, discount banners, and a growing healthcare platform. Over the last year, Loblaw has kept leaning into that practical strength. In February, it planned to invest $1.75 billion in 2026 and create 9,700 jobs, including opening more discount stores and modernizing its network. That fits a broader pattern from 2025, when it kept pushing value, convenience, and scale while Canadian shoppers stayed cost-conscious.
The company did miss fourth-quarter revenue estimates, but the reason was not collapse. It was a more careful consumer. The earnings support that view. In Q3 2025 results released in February, Loblaw stock reported revenue of $16.4 billion, while adjusted diluted earnings per share (EPS) rose 10.9% on a 12-week comparable basis and came in at $0.67, slightly ahead of estimates. The company also said it expects high single-digit growth in adjusted annual EPS for 2026. That is not flashy growth, but it is exactly the sort of durable progress long-term investors tend to appreciate.
The valuation is not dirt cheap, but it is still reasonable for a business this dependable. Loblaw stock recently held a market cap of about $75.4 billion and a price-to-earnings (P/E) ratio around 30, with a dividend yield of roughly 0.9% and a payout ratio near 26%. So no, this is not a high-yield income stock. It is more of a steady compounder with a modest dividend attached. But even that dividend can bring in immense income with $37,600.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| L | $63.83 | 588 | $0.56 | $329.28 | Quarterly | $37,532.04 |
Bottom line
That is why Loblaw fits so well here. At 55, many investors do not need wild swings. They need a business that keeps growing, keeps defending margins, and keeps giving them a reason to stay invested. The average TFSA at 55 may not be where most Canadians want it to be yet, but a stock like Loblaw stock shows how a TFSA can still become much more powerful with time, discipline, and the right holdings.
