Are you saving enough in your registered savings accounts? We looked at Statistics Canada data on the average balance of Canadians at age 45. But the data is divided into the 40–44 age group for the Tax-Free Savings Account (TFSA) and the 35–44 age group for the Registered Retirement Savings Plan (RRSP). We have considered this age group to determine the balance at age 45. According to the stats, Canadians had an average TFSA balance of $20,670 and an average RRSP balance of $82,100 in the 2023 tax year.
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Why is there a huge gap between TFSA and RRSP average balance?
The RRSP contribution room gets generated when you start earning and filing taxes. The contribution is 18% of the income or the maximum limit set by the Canada Revenue Agency (CRA). However, TFSA contributions are the same for all Canadians.
The average RRSP balance of $82,100 is far from the median balance of $30,000. The median is the mid-point of the RRSP balance range. When the average is near the median, it is a normal distribution curve. However, in this case, the average RRSP balance is skewed towards the high-income group. Another proof of this was visible in the RRSP contributions by income group.
While the median TFSA contributions were evenly spread across the income groups, median RRSP contributions jumped significantly for tax filers with income above $80,000.
| 2023 Tax Year (by Income Group) | Median RRSP Contributions | Median TFSA Contributions |
| Less than $20,000 | $1,060 | $6,000 |
| $20,000 to $39,999 | $1,300 | $6,500 |
| $40,000 to $59,999 | $1,980 | $6,100 |
| $60,000 to $79,999 | $3,000 | $6,460 |
| $80,000 and over | $6,810 | $6,500 |
This data shows that high-net-worth Canadians use RRSP contribution room to take advantage of its tax deductions. As a TFSA doesn’t provide any tax deduction, Canadians of all age groups invest in it to take advantage of its tax-free income and wealth.
While a TFSA has the flexibility to withdraw any amount at any time tax-free, an RRSP taxes the withdrawals. The money you don’t need for the long term goes into an RRSP.
An ideal stock for a TFSA
The TFSA contributions are made from the after-tax income. Since you have already paid tax on it, you can invest that money in stock trading on renowned public exchanges like the TSX and NASDAQ. You pay no tax on the investment income you earn and withdraw. That makes it ideal for stocks that can generate wealth by growing your money multiple-fold.
Kinross Gold (TSX:K) is one of the largest gold miners, having mines across multiple countries. It produced 2 million oz of gold in 2025 and aims to maintain this production in 2026. The miner has an all-in-sustaining cost of $1,571 per oz in 2025, which it expects to grow to $1,730 in 2026. All Canadian gold miners have one of their strongest balance sheets, as they used the windfall gains to pay down debt. Kinross has $750 million in debt maturing in 2033 and 2041 and a net cash position of $1 billion in 2025.
Gold is currently trading above US$4,800/oz and could surpass US$5,000/oz, leaving a good annual margin for Kinross. Its stock price surged 100% in the last 12 months, with pockets of 22–30% jumps in certain months. The stock has already surged 28% since its March dip as the Iran war pulled down gold prices. You can buy at every dip or every quarter and make the most of the gold price rally. This strategy can help you beat the market in 2026.
An ideal stock for an RRSP
RRSP withdrawals are taxable and do not provide a tax benefit after retirement. Thus, you want more conservative stocks with assured returns even in a crisis. Enbridge (TSX:ENB) is perfect for RRSPs with its 5.4% annual dividend yield and a strong history of 30 years of dividend growth. Enbridge’s dividend is likely to grow by 5% from 2027 onwards, helping you fight inflation.
Enbridge manages to pay dividends from the toll money it collects for transmitting oil and gas between Canada and the US. It is increasing the natural gas pipeline to tap Asian markets for exports.
