According to Statistics Canada’s TFSA data, the average TFSA balance of those below age 50 was 20–27% of their cumulative contribution (CC) room. However, this figure spiked to 34% at age 50 and kept increasing. For calculation reasons, we took the start of the age range to determine the contribution room. For the age 30–34, the CC is for those who turned 30 in 2023.
| Age Group (2023 Tax Year) | 25–29 | 30–34 | 35–39 | 40–44 | 45–49 | 50–54 | 55–59 | 60–64 |
| Avg Fair Market Value (FMV) | $13,149 | $16,760 | $18,842 | $20,670 | $24,150 | $30,190 | $37,600 | $45,109 |
| Cumulative Contribution (CC) | $41,500 | $73,000 | $88,000 | $88,000 | $88,000 | $88,000 | $88,000 | $88,000 |
| FMV/ CC | 32% | 23% | 21% | 23% | 27% | 34% | 43% | 51% |
What changed at age 50 is that their TFSA balance increased significantly.
We looked at data from the pandemic years, and the average TFSA balance of 50-year-old Canadians was in the range of 30% of their CC.
| TFSA Statistics for Age 50–54 | 2020 | 2021 | 2022 | 2023 |
| Avg FMV | $24,422 | $28,611 | $26,479 | $30,190 |
| Average Contribution | $9,827 | $11,668 | $10,331 | $11,051 |
| Average Withdrawal | $8,669 | $9,986 | $10,219 | $11,413 |
| CC | $69,500 | $75,500 | $81,500 | $88,000 |
| Avg FMV/ CC | 35% | 38% | 32% | 34% |
Source: Getty Images
How much does a typical 50-year-old Canadian have in their TFSA?
At 50, Canadians significantly increased their TFSA contributions to $11,051 from contributions of $9,737 made by Canadians in the 45-49 age group. While the average TFSA withdrawals are close to contributions, it was the investing income that spiked the TFSA fair market value (FMV). Because the total TFSA FMV jumped from $32.6 billion in the 45-49 age group to $40.4 billion in the 50-54 age group. Such a remarkable jump in TFSA contributions and FMV is visible at age 25 as well.
| Age | Avg FMV | Avg Contribution |
| 20–24 | $7,894 | $5,633 |
| 25–29 | $13,149 | $7,229 |
| 30–34 | $16,760 | $8,173 |
| 35–39 | $18,842 | $8,657 |
| 40–44 | $20,670 | $9,014 |
| 45–49 | $24,150 | $9,737 |
| 50–54 | $30,190 | $11,051 |
| 55–59 | $37,600 | $12,302 |
| 60–64 | $45,109 | $13,167 |
In 2023, a typical 50-year-old Canadian had $30,190 in their TFSA, which is just 34% of the cumulative contribution room they had in 2023. In 2026, this contribution room has surged to $109,000. If Canadians maintained the 34–38% ratio, they would have a TFSA balance of $37,000–$41,400 in 2026.
Age 50 is a warning bell to up your savings game and start saving aggressively for retirement. At 50, you are at your career peak, and major expenses like house, education, and marriage are behind you. How much should you invest in a TFSA to catch up to your retirement portfolio?
How much should you invest in the TFSA?
Honestly, among all the registered retirement accounts, the TFSA has the best benefit. It gives you the flexibility to withdraw tax-free. The CRA also adds back withdrawals to the contribution room on January 1 of the next year. Whether to contribute what you withdrew is a choice and not an obligation. The only obligation a TFSA puts on you is that you can’t over-contribute, and you can only invest in renowned and well-regulated investment instruments.
At 50, Canadians should start using the unused TFSA contribution room. The average unused TFSA contribution room was $57,855 in the 2023 tax year. Any bonus or capital gain can be diverted to a TFSA.
When investing through a TFSA, look for high-growth stocks as you still have 10 years to build a significant balance. Shopify (TSX:SHOP) is a perfect TFSA stock as it can give you 50% annual growth if you follow the seasonal trend of buying in March-April and selling in November and February. The most profitable investing strategy for Shopify is rebalancing 80% and holding 20% for the long term.
Suppose you buy 100 shares of Shopify for $165 now and hold 20 shares for the long term. The remaining 80 shares can be used for rebalancing and accumulating. Suppose the stock price rises to $250 in November, you can sell 80 shares costing $13,200 for $20,000 and book a profit of $6,800. This $20,000 can be reinvested to buy Shopify shares in March, probably for $180. Even though the cost has increased, it will buy you 111 shares and increase your share count to 131 (111 + 20 shares in reserve). You have got 31 shares from compounding.
