How Much Canadians Typically Have in a TFSA by Age 55

The average Tax-Free Savings Account (TFSA) at 55 may surprise you. And I kind of hope it does.

By that age, many Canadians are thinking seriously about retirement, mortgage freedom, helping adult kids, or building a bigger tax-free income stream. Yet CRA data shows Canadians aged 55 to 59 had an average TFSA fair market value of $43,519 in the 2024 tax year. That’s under 40% of what this age group has available in their TFSA contribution room at writing.

Bridging the gap

Now to be clear, that’s not a bad number. But it’s also well below the full potential of the account. If you’re 55 and your TFSA is below that average, don’t panic. Averages can be misleading. Some Canadians use their TFSA for emergencies. Some hold cash. Some withdrew money for a home, a renovation, a job loss, or family needs. Others didn’t have money to contribute every year.

There’s also the fact that Canadians have multiple tax-beneficial accounts they can invest in. Many may choose to put their funds in a Registered Retirement Savings Plan (RRSP) instead, saving for retirement while bringing down their total taxable amount each tax season.

So if you’re below that threshold, or indeed reaching it, the question may not be how did you get here, but the better question is what to do next?

Consider XEQT

That’s where an ETF such as the iShares Core Equity ETF Portfolio (TSX:XEQT) can help. XEQT is an all-in-one equity ETF. It gives investors exposure to thousands of stocks across Canada, the United States, international developed markets, and emerging markets. Instead of trying to pick the perfect stock, investors can own a globally diversified portfolio through one TSX-listed fund.

For a 55-year-old Canadian, that can be useful. There may still be 10, 15, or even 20 years before needing to draw heavily from a TFSA. Retirement isn’t one single day where investing stops. Many investors will keep part of their portfolio growing well into their 60s, 70s, and beyond.

XEQT fits investors who want long-term growth and can handle market swings. It doesn’t hold bonds, and that means it can fall hard during market downturns. Investors who need money within the next year or two probably shouldn’t put that cash into an all-equity ETF. But for money meant to grow over many years, XEQT can do a lot of work.

Why it works

The appeal is simplicity. One ETF can replace a messy mix of funds, random stocks, and cash sitting idle. It also removes the need to keep guessing which market will perform best next. If U.S. stocks lead, XEQT has exposure. If Canadian banks, energy stocks, or global companies perform well, the fund participates too.

The cost is also low. BlackRock reduced XEQT’s management fee to 0.17% in late 2025. Fees aren’t exciting, but they eat into returns every year. A low-cost ETF lets more of the market’s return stay with the investor.

A 55-year-old with a $43,519 TFSA doesn’t need to swing for the fences. The account still has time to grow, especially if contributions continue and distributions are reinvested. Even investing that amount in XEQT can make a meaningful difference when paired with a disciplined investment plan.

Bottom line

The biggest mistake is treating the average as a final grade. It isn’t. The average tells you where many Canadians sit. It doesn’t tell you what your TFSA can become. For some investors, the right move may be to build a balanced mix of cash, fixed income, dividend stocks, and growth ETFs. For others with enough savings elsewhere and a longer time horizon, XEQT could be a strong core holding.

At 55, the TFSA still has real power. The contribution room is valuable. The tax-free growth is valuable. And a simple global equity ETF can turn unused or underused room into a long-term wealth-building tool. So while the average Canadian TFSA balance at 55 may be $43,519, that number doesn’t have to define your next decade.