Here's What a Typical Canadian's TFSA Balance Looks Like at 50

Here’s What a Typical Canadian’s TFSA Balance Looks Like at 50

Canadians around age 50 are increasing TFSA contributions as they focus more on building tax-free retirement wealth.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published May 14, 4:10 pm EDT

As we move closer to retirement, building a healthy Tax-Free Savings Account (TFSA) balance tends to become a major financial priority. Recent Statistics Canada data shows TFSA contributions generally rise as Canadians approach their 50s. In 2023, Canadians aged 45 to 54 contributed a median of $5,200 to their TFSAs, while those contributing to both a TFSA and Registered Retirement Savings Plan (RRSP) had combined median contributions of $12,820.

These contribution figures clearly highlight how many Canadians around age 50 are actively focusing on growing tax-free retirement savings while balancing long-term stability and income generation. Since investment gains and withdrawals inside a TFSA remain tax-free, many investors use these accounts to build passive income and long-term wealth more efficiently.

That’s why high-quality dividend stocks with durable business models could become attractive TFSA holdings. In this article, I’ll look at two reliable Canadian stocks that could help strengthen your TFSA portfolio over the long run.

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TD stock offers stability and long-term growth

When it comes to building a TFSA around stability, not many stocks carry the same weight as Toronto-Dominion Bank (TSX: TD), especially for investors approaching retirement who value consistency along with growth. It remains one of Canada’s largest and most diversified financial institutions, operating across Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking.

At the time of writing, TD stock trades at $147.59 per share with a market cap of about $247 billion. Over the last year, the stock has surged 67% due mainly to its improving financial performance.

In the first quarter of its fiscal 2026 (ended in January), the bank reported adjusted net income of $4.2 billion, up 16% year-over-year (YoY) as its Canadian personal and commercial banking segment posted record revenue of $5.4 billion, driven by solid loan and deposit growth.

TD’s wealth management and insurance business also delivered record earnings of $757 million in the quarter, backed by strong transaction revenue, rising insurance premiums, and record client assets.

Beyond its financial growth, TD continues investing heavily in technology and artificial intelligence (AI) to improve the customer experience and efficiency. During the quarter, it expanded its AI-powered branch virtual assistant across Canada and introduced new digital tools to speed up lending decisions.

For income-focused TFSA investors, TD remains an attractive option with a quarterly dividend of $1.08 per share, translating to a dividend yield of about 2.9%.

Open Text stock is benefiting from AI and cloud growth

For those looking to add a bit more growth to the mix without giving up on income, Open Text (TSX: OTEX) could give exposure to the fast-growing world of enterprise software, cloud, and AI. It mainly focuses on helping organizations securely manage data through cloud-based solutions, enterprise software, and artificial intelligence-driven services.

After climbing 13% over the last month, OTEX stock currently trades at US$32.68 per share with a market cap of roughly US$7.9 billion.

The company’s recent financial results showed encouraging momentum. In the third quarter of fiscal 2026, Open Text posted total revenue of US$1.3 billion, representing 2.2% YoY growth. More importantly, its cloud revenue rose 6.6% from a year ago to US$493 million as its enterprise cloud bookings remained strong.

At the same time, Open Text’s profitability remained healthy as it posted a strong net profit margin of 13%, reflecting disciplined cost management and operational efficiency.

Meanwhile, the company continues focusing heavily on cloud expansion and enterprise AI capabilities. Its recent US$150 million divestiture of Vertica highlights management’s strategy of streamlining operations while concentrating resources on higher-growth businesses.

For TFSA investors seeking both income and growth, Open Text stock also offers a dividend yield of 4.6%, providing a stronger passive income stream along with long-term upside potential.