The Average TFSA Balance at 55 and How to Improve Yours

The average Canadian TFSA balance at 55 sits near $40,000. Here’s how Topaz Energy could help you close the gap before retirement.

Key Points
  • The average Canadian TFSA balance in the 55- to 59-year age bracket ranges from $39,200 to $43,519, according to data from the Canada Revenue Agency and Statistics Canada.
  • Most 55-year-olds have used less than 40% of their total available TFSA contribution room, leaving over $65,000 of tax-free compounding potential completely untouched.
  • Topaz Energy is one of the best income stocks to put to work inside a TFSA right now, backed by record royalty production and a freshly raised dividend yield near 4.5%.

If you are 55 and your TFSA (Tax-Free Savings Account) balance is sitting around $40,000, you are not alone. But you are leaving serious money on the table. The good news? You still have time to change that. And a dividend royalty stock like Topaz Energy (TSX: TPZ) could be the kind of holding that helps you get there.

Blocks conceptualizing Canada's Tax Free Savings Account

Source: Getty Images

Most Canadians at 55 are missing a massive TFSA opportunity

The average TFSA balance for Canadians aged 55 to 59 ranges from $39,200 to $43,519, based on data from the Canada Revenue Agency and Statistics Canada. That number sounds reasonable until you put it in context.

By 2026, the total lifetime TFSA contribution room for any Canadian who was 18 or older when the program launched in 2009 will have grown to $109,000. It means the typical 55-year-old has only used about 38% of their total tax-free contribution space. There is roughly $65,000 to $70,000 of unused room sitting idle.

Most Canadians treat their TFSA like a savings account and hold cash or guaranteed income certificates in it. These instruments are safe but not positioned to deliver inflation-beating returns over the long term.

The fix is simple. Stop saving inside your TFSA. Start investing.

Topaz Energy can turbocharge your TFSA before retirement

Topaz is a Canadian royalty and infrastructure company. It does not drill wells but earns royalties when producers pump oil and natural gas from land where Topaz holds royalty interests.

This business model comes with something most investors love: predictable cash flow without the capital spending tied to operating a traditional energy company.

In Q1 of 2026:

  • Topaz reported record royalty production of 24,609 barrels of oil equivalent per day, an increase of 10% year over year.
  • Natural gas production hit a new record at 105.7 million cubic feet per day.
  • Total liquids production also set a record, rising 7% year over year.

Total first-quarter revenue and other income reached $94.6 million. The infrastructure side of the business, which includes natural gas processing facilities, delivered a 98% utilization rate and a 92% operating margin.

Topaz increased its quarterly dividend by 3% to $0.35 per share, or $1.40 per share annualized, translating to a forward yield of 4.5%. Valued at a market cap of $5 billion, Topaz Energy has returned close to $1 billion to shareholders since its inception.

The math that could rewrite your retirement

Run the numbers on what a well-invested TFSA can actually do.

If you start with $40,000 today, add $500 per month, and earn an 8% annual return in an equity portfolio, your balance will climb to over $178,000 by age 65.

The same starting balance in a 3% cash account yields roughly $124,000. That difference of more than $54,000 is completely tax-free.

A stock like Topaz fits squarely into that growth-oriented equity strategy. Its dividend yield provides recurring passive income, while the royalty model offers stability.

And its 2026 guidance, which now points to the upper end of its production range, suggests the underlying business has momentum. Topaz president and CEO Marty Staples noted during the earnings call that drilling activity across the company’s acreage remains strong.

Operators are actively expanding in the Clearwater, the Montney, and several other high-return plays. The company also expects waterflood injection rates at key acreage to double through 2026, a development Topaz says it did not underwrite when it originally acquired much of the land.

Maximizing unused TFSA contribution room, shifting out of cash-based holdings, and anchoring your portfolio around a dividend-paying royalty company with a proven track record of income growth could meaningfully improve your retirement picture.

Topaz Energy is a steady, income-generating machine. And right now, that is exactly what a TFSA at 55 needs most.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Topaz Energy. The Motley Fool has a disclosure policy.

More on Dividend Stocks

A woman shops in a grocery store while pushing a stroller with a child
Dividend Stocks

An Ideal TFSA Stock for Retirees, Paying 5.2% Each Month

Here's why this popular Canadian real estate stock is one of the best picks for retirees inside their TFSAs.

Read more »

Hand Protecting Senior Couple
Dividend Stocks

A 4.8% Dividend Stock for Monthly Retirement Income

Sienna Senior Living pays $0.08 a share every month, about a 4.8% yield. See Q2 2026 growth, payout safety and…

Read more »

woman looks at iPhone
Dividend Stocks

Is Telus’s New Dividend Safe? What $10,000 Would Earn You Today

Here’s why Telus’s new dividend looks more sustainable and why the cut could make the stock a better long-term investment.

Read more »

woman relaxes with phone
Dividend Stocks

BCE Earnings Preview: Is the Dividend Still the Main Event?

BCE’s Q3 2026 results will reveal whether its shift from dividend growth to debt reduction is delivering meaningful financial progress.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

This 2% Monthly Payer Is the One Stock I’d Never Sell

Supported by strong fundamentals, favourable industry tailwinds, and promising growth prospects, Savaria offers long-term investors the potential for capital appreciation…

Read more »

A glass jar resting on its side with Canadian banknotes and change inside.
Dividend Stocks

How Much Emergency Money Do Canadians Actually Need?

Generally, aim for 3–6 months of essential living expenses for your emergency money. For those with more variability in their…

Read more »

RRSP (Registered Retirement Savings Plan) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

The RRSP Deadline is in March: Here’s Why November Starters Come Out Ahead

An earlier RRSP contribution plan spreads the cash commitment and leaves more time to make sensible investment choices.

Read more »

Canadian investor contemplating U.S. stocks with multiple doors to choose from.
Dividend Stocks

BCE vs. Telus vs. Rogers: Which Is the Best Stock to Buy Today?

Which is the best stock to buy today: BCE, Telus or Rogers? Compare their dividends and cash flow to see…

Read more »