A Tax-Free Savings Account (TFSA) can be your ticket to a million-dollar tax-free portfolio, if used right. Yet most Canadians use only 30–40% of their capability. According to Statistics Canada data for the 2024 tax year, Canadians in the 50–54 age group had an average TFSA balance of $35,235, which is 37% of the TFSA contribution room. This was a remarkable improvement from the 2023 average balance of $30,190 (34% of contribution room).
How much Canadians typically have in a TFSA by age 50
As Canadians near retirement age, they start investing more in a TFSA. An average 50-year-old Canadian contributed $11,942 in their TFSA in 2024, higher than the $10,967 contributed by the age band 45–49.
| TFSA Statistics for Age 50–54 | 2013 | 2018 | 2020 | 2021 | 2022 | 2023 | 2024 |
| Average Contribution | $6,240.22 | $8,189 | $9,827 | $11,668 | $10,331 | $11,051 | $11,942 |
| Avg Fair Market Value (FMV) | $11,043.88 | $18,673 | $24,422 | $28,611 | $26,479 | $30,190 | $35,235 |
| Cumulative Contribution (CC) | $25,500 | $57,500 | $69,500 | $75,500 | $81,500 | $88,000 | $95,000 |
| TFSA Balance/ CC | 43% | 32% | 35% | 38% | 32% | 34% | 37% |
While the fair market value is influenced by one’s investment choices and TFSA withdrawals, contributions speak in raw numbers. It shows an average Canadian’s investment capacity. In the seven years of data, the 2024 contribution was the highest, showing a growing realization of TFSA benefits among Canadians.
You can see Canadians are catching up with their unused TFSA contribution. If your TFSA balance is above the average, you are on the right track. If your goal is to build wealth and not reduce your current tax bill, a TFSA is the instrument. You may think that it doesn’t give any immediate tax deductions. However, its long-term benefits far outweigh those of a Registered Retirement Savings Plan (RRSP).
Source: Getty Images
TFSA tax benefits far outweigh any other registered account
Every registered account has restrictions on withdrawal. But a TFSA gives you complete flexibility. If you have even a million-dollar balance, you can withdraw it all and pay no tax. Imagine funding your yacht with a TFSA, only if you are lucky with your investment game.
By luck, we mean someone who invested $25,000 in Nvidia or Celestica 10 years back and is now sitting on a TFSA balance of $4.6 million or $1 million, respectively. Putting all your money on one stock is not a good idea, and a $25,000 investment in one go looks risky.
| Stocks | May-16 | May-26 | No of Shares Bought From $25,000 | Value of the Stocks Today |
| Nvidia | $1.11 | $207.83 | 22,522 | $4,680,747.26 |
| Celestica | $14.00 | $564.36 | 1,785 | $1,007,382.60 |
No one is sure which stock will take flight. But the idea behind highlighting these stocks is to tell you that you only want one of your investments to succeed. Over the years, you might have invested in 10 to 15 growth stocks, but if even one stock can give windfall returns, it will make up for other stock losses. Many private equity investors, movie stars, and even companies rely on this logic.
The hyper growth stock to buy and hold for a decade
NVIDIA and Celestica have already made their windfall rally. While they still have potential to grow, the growth is not enough to convert $25,000 to $1 million. Ballard Power Systems (TSX:BLDP) is a stock worth considering for hyper growth. The company has made a hydrogen fuel cell for commercial vehicles. After more than two decades of research and testing, the fuel cell maker has finally managed to commercialize this technology and bring its cost on par with diesel engines.
Now may be a good time to buy the stock. In the next three to five years, the company will speak the language of investors, return on investment (ROI). It has onboarded a professional management team – chief executive officer and chief financial officer – to make profit from this technology. The company reported its first gross profit in 2025 and now aims to report positive cash flow by 2027. If this technology is adopted, it could reduce dependence on oil and natural gas and help countries achieve energy security.
When this will happen is difficult to tell. It is like Celestica in 2016, when it was a third-party electronics manufacturer. Today, it is an original design manufacturer catering to hyperscalers. Ballard could be tomorrow’s Celestica.
