A typical 45-year-old Ontario resident likely has less saved in a Tax-Free Savings Account (TFSA) than many people assume. The Canada Revenue Agency doesn’t publish one neat figure for 45-year-olds in Ontario, but its 2024 contribution-year statistics give us two useful clues. Canadians aged 45 to 49 had an average TFSA fair market value of $28,084. Ontario TFSA holders of all ages had an average fair market value of $38,132.
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Is it enough?
For a 45-year-old Ontarian, a reasonable benchmark likely sits somewhere around that range, perhaps closer to the national 45-49 figure if we focus on age. That may sound respectable, but by 45, many Canadians have already had 16 years of TFSA room available since the account launched in 2009. The gap between what the TFSA can do and what many investors have actually built remains pretty wide.
That’s not a reason to panic, but investors should get serious. The TFSA works because it lets investments grow tax-free. Dividends, capital gains, and withdrawals don’t trigger tax. That makes it much more than a savings account, even though the name still nudges people toward cash. Cash has a role in emergencies, but long-term TFSA money needs a stronger job. It should grow.
For Ontario residents, housing costs can crowd out investing. A TFSA gives flexibility without locking money away like a Registered Retirement Savings Plan (RRSP). That flexibility can help families save for retirement, a career change, or later-life security while keeping future withdrawals completely tax-free in the future.
Consider VXC
That’s where Vanguard FTSE Global All Cap ex Canada Index ETF (TSX: VXC) can help. VXC gives Canadian investors exposure to large-, mid-, and small-cap companies in developed and emerging markets outside Canada. In one exchange-traded fund (ETF), investors can reach the United States, Europe, Japan, emerging markets, and other global economies.
VXC tracks a broad global index and aims for long-term capital growth. Vanguard’s ETF facts also make clear that investors should use it if they can handle stock market swings and don’t need steady income from the investment. That fits a 45-year-old with 15-25 years before retirement, assuming the money isn’t needed soon.
The catalyst here comes from diversification. Canada makes up a small slice of the global market, yet many Canadians keep most of their wealth close to home. That can feel comfortable, but it can also leave a portfolio too exposed to a few sectors. VXC spreads risk across thousands of global companies, including many of the world’s largest technology, consumer, healthcare, and industrial names. There’s also a behavioural advantage. A single broad ETF can reduce the urge to jump from one hot stock to another. Investors still need discipline, but VXC keeps the plan simple: contribute, reinvest, and hold through market cycles.
Foolish takeaway
The biggest risk for many 45-year-olds may be doing too little. A TFSA balance around $28,000 to $38,000 offers a start, not a finish line. With the 2026 TFSA limit at $7,000, investors still have room to build. Even smaller monthly contributions can help if they stay consistent. In fact, here’s what VXC could bring in from $35,000 alone.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| VXC | $83.10 | 421 | $1.02 | $430.31 | Quarterly | $34,985.10 |
Altogether, don’t compare your TFSA to someone else’s highlight reel. Compare it to your own future needs. If you’re 45 and behind, you still have time. A globally diversified ETF like VXC can turn unused TFSA room into a long-term growth engine. The sooner that engine starts working, the more useful it can become.
