Canadians can secure their financial futures through the Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP). Both are investment accounts for wealth accumulation. The Canada Revenue Agency (CRA) allows Canadians to hold a tax-advantaged account (TFSA) and a tax-sheltered account (RRSP) at the same time.
Eligible investments in both accounts are bonds, mutual funds, guaranteed investment certificates (GICs), exchange-traded funds (ETFs), and stocks. The difference is in the mechanics. Long-term compounding is the salient feature of the two most popular retirement accounts.
Data, however, shows that contribution rooms haven’t been maximized. The average TFSA and RRSP at age 45, or of Canadians in their mid-life, is revealing.
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Published benchmarks
Published reports say the combined savings (RRSP and TFSA) of 45-year-olds are approximately $90,000 to $100,000. Note that most in this age bracket are in their peak earning years.
The maximized room for an RRSP in 2026 varies because contributions are income-based, while the average balance is $82,100. For the TFSA, the maximum accumulated contribution since its inception in 2009 is $109,000. However, the average balance is $21,177.
Inflation and rising costs of living are common factors that prevent RRSP and TFSA users from maximizing their available limits or contribution rooms. The ideal RRSP balance at age 45 is $250,000 to $300,000 (dependent on 18% of earned income). Whereas, for the TFSA, the on-track balance is from $45,000 to $60,000.
Fill the pension shortfall
The Canadian Pension Plan (CPP) and Old Age Security (OAS) provide a solid foundation and safety net, but not enough to support a comfortable retirement. Many Canadians use RRSPs and TFSAs to fill the significant shortfall in government benefits, to at least maintain their standard of living.
People in the mid-life age bracket have sufficient time to take control. You can play catch-up or work to augment your CPP and OAS benefits by using the RRSP and TFSA to save and invest. With an earning potential of 20 years (to age 65), the improved risk profile of BCE (TSX: BCE) makes it a suitable core holding in either account.
Industry titan
BCE is Canada’s most dominant telecommunications company. At $33.42 per share, the dividend yield is 5.2%. Given the low payout ratio of 25.9%, quarterly payouts are now more sustainable. The $30.9 billion industry titan had to slash dividends in 2025 to strengthen the balance sheet, reduce debt, and free capital for growth.
In Q1 2026, operating revenues and free cash flow (FCF) increased 4% and 0.8% year-over-year, respectively, to $6.2 billion and $804 million. Net earnings, however, declined 2.3% to $667 million compared to Q1 2025. BCE projects 10% FCF growth in 2026, while maintaining the annualized common dividend per share at $1.75.
BCE’s near-term plan includes growth in AI-powered enterprise solutions and the construction of the Saskatchewan AI data centre. Its President and CEO, Mirko Bibic, said, “We look to create long-term value for our shareholders.”
Second wind
A 20-year horizon is still significant and could be a strong second wind for Canadians aged 45 to secure their financial future. Retirement pillars such as the RRSP and TFSA will be around in their lifetimes.
