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.

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

Data Center Engineer Using Laptop Computer crypto mining
Tech Stocks

Hammond Power Solutions Is Positioned for the Big Data Centre Buildout: Here’s How I’d Buy It

Analyze the current issues impacting data centres, from AI investment strategies to concerns reminiscent of past financial crises.

Read more »

A meter measures energy use.
Dividend Stocks

Canadian Utility Stocks Report Soon: Should You Buy Before or After Earnings?

Canadian utility stocks report soon. See what Fortis, Emera and Canadian Utilities investors should consider before buying ahead of earnings.

Read more »

Person uses a tablet in a blurred warehouse as background
Dividend Stocks

An Ideal TFSA Stock for October, Paying 0.34% Each Month

Explore the advantages of a TFSA and discover how selecting the ideal TFSA stock can maximize your investment returns.

Read more »

Canada day banner background design of flag
Energy Stocks

76% of Albertans Chose Canada: This Alberta Gas Stock Just Hit a 3-Year High

Tourmaline's costs, market access, and planned dividend increase provide a more durable investment case than referendum relief.

Read more »

shoppers in an indoor mall
Dividend Stocks

A Top-Notch 5.5% Dividend Stock Paying Cash Every Month in Retirement

Crombie REIT offers a dependable yield and a low payout ratio. Discover why it’s a top choice for monthly retirement…

Read more »

A glass jar resting on its side with Canadian banknotes and change inside.
Dividend Stocks

Dividend Income on a Small Budget: Where Canadians Can Start

Stocks like Fortis Inc (TSX:FTS) can produce substantial dividend income.

Read more »

a person watches stock market trades
Energy Stocks

Enbridge Stock: 3 Things to Look for in Its Q3 Results

While geopolitical uncertainties and commodity price volatility remain potential risks, Enbridge’s Q3 outlook remains strong.

Read more »

Group of people in a line at an ATM waiting to make a cash withdrawal
Stocks for Beginners

Canadian Bank Stocks in Late 2026: Which Ones I’d Buy and Which I’d Skip

Canadian bank stocks offer different buying cases in late 2026. Compare Scotiabank, TD and Royal Bank on income, earnings and…

Read more »