How Much Canadians Typically Have in a TFSA by Age 55

By age 55, Canadians in the 55-59 bracket had an average Tax-Free Savings Account (TFSA) fair market value of about $38,334, according to the latest Canada Revenue Agency statistics based on the 2023 contribution year. That’s not nothing, but on its own, it likely won’t carry a full retirement. The more encouraging number is the unused room: that same age group had an average unused TFSA room of about $52,532, which means many Canadians still have a lot of catching up they can do.

Catching up

The good news is that 55 isn’t too late. In fact, it can be a smart time to get more serious, because retirement finally starts to feel real. If you still have contribution room, adding money steadily over the next 10 years can make a bigger difference than many investors think. Even a few strong years of disciplined investing inside a TFSA can boost tax-free income later on, especially when you stop letting cash sit idle.

The next step is choosing an investment that matches the job. At 55, most investors want growth, but they also want fewer sleepless nights. That usually means leaning away from all-stock portfolios and towards something balanced. A portfolio with both equities and bonds can still grow, while giving you some cushion when markets get messy. That balance matters more when retirement is close enough to see on the calendar.

Consider VBAL

That’s where Vanguard Balanced ETF (TSX: VBAL) fits nicely. It gives investors a one-ticket portfolio with roughly 60% in stocks and 40% in fixed income, all wrapped into a single TSX-listed exchange-traded fund (ETF). For someone who wants to keep building wealth without constantly tinkering, that simplicity is a real strength. You get broad exposure to Canadian, U.S., and international equities, plus a big bond sleeve that can help smooth the ride.

Vanguard’s one-year return is now at about 8% as of writing. Over the last year, Vanguard also cut the ETF’s management fee to 0.17% from 0.22%. Furthermore, VBAL held total net assets of nearly $4.9 billion at writing. Its underlying equity sleeve traded at a price-to-earnings ratio of 21 at writing, while the bond sleeve offered an effective yield to maturity of 3.43%.

The future outlook also looks fairly reasonable for a balanced fund like this. Vanguard’s 2026 outlook for Canada projects core inflation near 2.3% by the end of the year, and its broader market outlook says fixed income should remain attractive in a world where interest rates stay above inflation. Vanguard has also argued that a 40/60 portfolio could produce returns similar to a 60/40 mix over the next decade, but with less risk. That doesn’t guarantee smooth sailing, but it does support the case for a fund like VBAL for investors who want to grow their TFSA without going overboard.

Bottom line

So, how much do Canadians typically have in a TFSA by age 55? The average says around $38,334, and for most people, that’s probably not enough by itself. But it’s also not game over. In fact, if you put that towards VBAL for 15 years, here’s what that could look like with dividends reinvested with shares rising by a compound annual growth rate (CAGR) of 8.3%, as it’s done over the last five years, and dividends by 14%.

If you still have room, still have a few working years ahead, and want a simple way to keep building retirement savings, VBAL looks like a strong fit. It won’t make your TFSA exciting, but it could make it a lot more useful, and by retirement, that’s usually the smarter goal.