What the Average Canadian TFSA Looks Like at Age 50

Make the most of your TFSA by learning what the average Canadian TFSA looks like at 50 to see where you can do better.

Adam Othman

Adam is a value investor who is always on the hunt for fantastic undervalued companies that he can share with Motley Fool readers. He follows Warren Buffett and Charlie Munger's investment advice and has completed the Canadian Securities Course. When he's not investing, Adam can usually be found traveling or skiing.

Published June 13, 9:45 am EDT

| More on: MFC

Key Points

Canadians aged 50–54 held an average $30,190 in TFSAs in 2023 while carrying about $57,855 of unused contribution room, revealing substantial underuse of the TFSA.
Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income. Maximizing TFSA room matters because investment returns and withdrawals are tax-free, so using a self-directed TFSA to hold income-generating dividend stocks can meaningfully boost retirement income.
Manulife Financial (TSX:MFC) is highlighted as a long-term TFSA pick — ~$90B market cap, Q1 FY2026 core earnings +8% YoY, ROE ~16.5%, trading near $54 with a 3.59% yield and ~10% dividend growth over the past decade.

Canadians nearing retirement might be surprised to learn what the average balance is in their Tax-Free Savings Accounts (TFSAs) by the age of 50. Based on data released by Statistics Canada last year, in the 2023 contribution year, Canadians between 50 and 54 held an average of $30,190 in their TFSAs. The same age group had an average of $57,855 in unused contribution room.

It is alarming to see that, despite all the benefits a TFSA offers, Canadians in this group have more unused room than contribution room being utilized to get the best a TFSA can offer. The TFSA is the best investment vehicle that Canadians have, and they do not seem to be using it.

As retirement inches closer, maximizing your TFSA contributions can make a significant difference for your financial freedom during your retirement.

woman looks ahead of her over water — Source: Getty Images

Why the unused contribution room matters

Any qualifying investments you hold in a TFSA provide returns that the Canada Revenue Agency (CRA) will not tax. Why? TFSA contributions are made with after-tax dollars. It means that you have already paid taxes on the money going into the account. Any returns generated from interest, dividends, or capital gains are exempt from taxes. It might not save a lot in the short term, but it can lead to substantial long-term savings.

Tax-free growth is accompanied by tax-free withdrawals, making the account seem even more attractive. You can withdraw funds from the account whenever you need, without worrying about contributing to your taxable income for the year. The more you generate through a TFSA, the more you can have for monthly expenses without worrying about moving into a higher tax bracket.

Using the TFSA to hold a self-directed portfolio of high-quality dividend stocks that balance income growth and capital appreciation can be an excellent strategy to consider.

A TSX stock to buy and hold forever

There is no shortage of high-quality blue-chip stocks that fit the bill on the TSX. One stock I would consider as a long-term TFSA holding is Manulife Financial Corp. (TSX:MFC).

Manulife Financial is a $90.12 billion market-cap giant in the insurance and wealth management industries. The stock recently released its first-quarter results for fiscal 2026 and saw a pullback in share prices as a result. Despite the dip in share prices on the stock market, the performance of the underlying business remained solid and painted a better picture of long-term growth potential.

Manulife Financial has built a strong presence worldwide as it continues expanding to key markets. The broader market volatility might not be doing any favours to its share prices, but the company reported an 8% year-over-year increase in its core earnings. Its net profit attributable to shareholders also grew to $1.1 billion. The company’s core return on equity also reached 16.5% in the quarter, showing that the company has solid profitability.

Foolish takeaway

As of this writing, MFC stock trades for $54.00 per share and pays investors $0.485 per share each quarter, translating to a 3.59% annualized dividend yield. Having increased its dividends at a rate of almost 10% over the last 10 years shows that it has the potential to be an investment that TFSA investors seek for long-term compounded growth.