Serious retirement planning today involves investing, not just saving. Canadians can do both using two powerful wealth-building tools. Used correctly, the Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) – or a combination of both – can help secure your financial future.
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The 45-year-old benchmark
The average TFSA and RRSP balance varies significantly by age, but the mid-40s, particularly 45, is a critical milestone for prospective Canadian retirees. Based on published reports, the TFSA value for the age group 45 to 49 years old is $21,177. Meanwhile, for RRSP users aged 45 to 54, the average is $150,300.
Financial experts say the actual utilization data highlights a slow midlife savings growth trend. Many can’t prioritize TFSA and RRSP contributions amidst rising living expenses. However, there’s enough room for improvement, with approximately 15 to 20 years until the traditional retirement age.
People at age 45 can turn things around by leveraging the salient features of both retirement accounts. The TFSA offers tax-free growth and withdrawals, while RRSP contributions are tax-deductible. Also, the power of compounding works best if you hold income-producing assets like stocks in your TFSA and RRSP.
Total return play
Brookfield Infrastructure Partners (TSX: BIP.UN) is a suitable holding in a TFSA for capital growth, yield, and defensive stability. The $24.9 billion company owns and operates critical infrastructure assets globally. At $54.10 per share, BIP.UN is up 16% year-to-date and pays a 3.4% dividend.
A $7,000 investment will generate $58.80 in quarterly tax-free income. If you reinvest the dividends, the capital will compound to $11, 562.94 in 15 years. Management expects the strong cash flow generation to achieve its 5% to 9% annual distribution growth target.
According to Sam Pollock, CEO of Brookfield Infrastructure, the company’s strategic partnerships with high-quality counterparties are key growth drivers. Furthermore, these alliances expand business opportunities and reinforce Brookfield’s position as an ideal partner for large-scale infrastructure investment.
New secured investment opportunities in Q1 2026 alone reached approximately $400 million, while funds from operations increased 9.8% to $709 million compared to Q1 2025. Notably, BIP-UN has never missed a quarterly dividend payment since 2017.
Ultimate RRSP pick
Royal Bank of Canada (TSX: RY), TSX’s largest company by market capitalization, is the ultimate RRSP pick. In Q1 fiscal 2026 (three months ending April 30, 2026), net income increased 25% year-over-year to $5.5 billion, while provision for credit losses (PCL) declined 54.4% to $912 billion. Also, the 17.2% return on equity (ROE) during the quarter surpassed the 16% target.
The $376.5 billion bank continues to focus on boosting its profitability and rewarding investors. If you invest today, the share price is $240.10, while the dividend yield is 2.6% following a 7% hike. The giant lender’s dividend track record is now 156 years. Expect higher payout as earnings grow.
The 2027 RRSP maximum limit is $35,390 or 18% of earned income in the 2026 tax year. Assuming you invest the same amount in RY, the capital will balloon to $52,204.40 in 15 years. Log in to the CRA My Account portal to find out your updated RRSP contribution balance.
Retirement foundation
A 15-year runway, plus Brookfield Infrastructure in a TFSA and RBC in an RRSP, can build a solid retirement foundation. You’re taking a strategic approach, not a reckless risk.
