What a Typical Canadian TFSA Actually Looks Like at 55

Here’s what the official data from Canada Revenue says about TFSA usage for Gen X.

| More on:
Key Points
  • The average TFSA value for Canadians aged 55 to 59 is about $37,600, reflecting real-world saving challenges over time.
  • ZGRO offers an 80/20 stock-bond mix for investors seeking higher long-term growth.
  • ZBAL provides a more conservative 60/40 allocation with lower volatility and steadier returns.

I’m not exactly a fan of the Canada Revenue Agency (CRA) for obvious reasons, but to their credit, they do occasionally publish some genuinely useful data.

One example is their annual TFSA statistics release. The latest version, published in 2025 using data from the 2023 contribution year, includes a table called “TFSA fair market value, contributions, and withdrawals by gender and age group.” It is about as straightforward as it sounds.

For investors aged 55 to 59, the average TFSA fair market value comes in at about $37,600. That is not a particularly large number, but it also is not that surprising when you consider what this group has been through.

Gen X investors lived through the dot-com crash, the 2008 financial crisis, and more recently, the COVID shock and inflation spike. Many also entered the housing market during periods of high interest rates or rising home prices, which likely diverted them away from investing.

Even so, that average number is a far cry from what is actually possible with consistent contributions over time. If you are in that age group and sitting around that level, the more important question is what to do next.

Middle aged man drinks coffee

Source: Getty Images

If you have a higher risk tolerance

To be fair, not everyone is trying to max out their TFSA. By your mid-to-late 50s, you may already have other parts of your financial life in good shape.

You might have a workplace pension plan, a well-funded Registered Retirement Savings Plan (RRSP), or significant home equity built up over time. In that case, your TFSA can be used more strategically for growth.

If you are aiming to compound your investments over the next decade before retirement, something like the BMO Growth ETF Portfolio (TSX: ZGRO) can make sense.

This ETF holds a globally diversified mix of about 80% equities and 20% bonds. That allocation leans toward growth while still maintaining some stability from fixed income.

It is also simple to manage. BMO handles the asset allocation and rebalancing internally, so all you need to do is invest and reinvest distributions. The cost is reasonable as well, with a 0.18% management expense ratio.

If you have a lower risk tolerance

That said, an 80% equity allocation will not be suitable for everyone. If you plan to retire earlier or simply prefer a smoother ride, a more balanced approach may be more appropriate.

The BMO Balanced ETF Portfolio (TSX: ZBAL) offers a similar globally diversified structure but shifts the mix to roughly 60% equities and 40% bonds. That helps reduce volatility and provides a bit more income, though it comes at the cost of lower long-term growth potential.

Like ZGRO, it is designed as a one-ticket solution. Asset allocation and rebalancing are handled automatically, making it easy to maintain without ongoing adjustments. ZBAL also carries the same 0.18% management expense ratio.

Fool contributor Tony Dong has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Investing

dreaming of financial success
Bank Stocks

TD Bank Is My Top Canadian Dividend Stock and I’m Never Selling

TD Bank (TSX:TD) stock is a dividend hero that I wouldn't sell after the recent run.

Read more »

young people stare at smartphones
Tech Stocks

Here’s a TFSA Stock Yielding 0.4% With Reliable Quarterly Payments

Apple (NASDAQ:AAPL) has a small dividend, but it's growing steadily. After a strong device showcase, perhaps the best spot for…

Read more »

monthly calendar with clock
Investing

This 5.8% Dividend Stock Pays Cash Every Month (and There Are Other Reasons You Might Want to Own It)

CT REIT (TSX:CRT.UN) might be the retail REIT to buy as shares plunge and yields swell.

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

This Isn’t a “Quick Win” Stock: It’s a “Steady Builder” One

CN Rail (TSX:CNR) may be the steadiest compounder on the entire Canadian stock market.

Read more »

dividend growth for passive income
Dividend Stocks

1 Undervalued Canadian Dividend Stock to Buy Now and Hold for Decades

This stock is down 15% from the recent highs and now offers an attractive dividend yield.

Read more »

Bottles and glasses of alcohol drinks
Investing

Trump’s Alcohol Ban Will Hit This Canadian Producer: What Corby Investors Need to Know

The strength of Corby’s domestic business has helped offset some of the potential weakness associated with U.S. exports.

Read more »

some investments are riskier than others
Investing

This Popular Income Strategy Promises Less Risk: Here’s What Investors Give Up

Covered-call ETFs like ZWC can pay high monthly cash flow, but the extra income comes from giving up some upside.

Read more »

The Meta Platforms logo displayed on a smartphone
Tech Stocks

1 Decision Today Could Change Your Financial Story

Contributing to and investing with your TFSA in names like Meta Platforms (NASDAQ:META) could change your long-term financial trajectory.

Read more »