The perspective on retirement changes when you turn 50. A wave of panic sets in for many after realizing they won’t be ready to retire in 10 to 15 years. The actual utilization of the Tax-Free Savings Account (TFSA), one of the country’s popular retirement accounts, offers insight into how Canadians are truly saving for their sunset years.
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The numbers: Actual versus lifetime limit
The most recent TFSA 2025 Statistics from the Canada Revenue Agency (CRA) show the reality versus the ideal. For the 2023 contribution year, the average fair market value per individual in the age group 50 to 54 is $26,792. While the number of contributions (250) is significantly higher than withdrawals (50), the average unused contribution room is $44,151.
As of January 1, 2026, the lifetime cumulative contribution is $109,000. A substantial gap clearly exists between the average balance of a 50-year-old TFSA user and a fully maximized account. However, it is not entirely worrisome, given a decade or more of runway to play catch-up.
Activate the growth engine
Unused contribution room carries forward to the next year, such that $44,151, plus yearly increases in TFSA contribution limits, presents a wealth-building opportunity. The retirement picture will improve immensely by investing in and holding growth and dividend stocks for 10 years or more.
A formidable combination for growth and dividend investing is Hammond Power Solutions (TSX: HPS.A) and Suncor Energy (TSX: SU). The former will provide capital gains, while the latter will accelerate capital compounding through dividend reinvestment.
Industrial powerhouse
Hammond Power Solutions is a back-to-back TSX 30 winner, the flagship program for the 30 top-performing Canadian stocks. The industrial powerhouse ranked first in 2024 and placed third in 2025. At $335 per share, the year-to-date gain is 110.6%. The total three-year return is 600%. Had you invested $40,000 in a TFSA three years ago, your balance would be $280,241 today.
The $4 billion company manufactures dry-type transformers, as well as electrical transformers, power products, and magnetic devices. Grid electrification, electric vehicle (EV) charging infrastructure, and the buildout of AI data centres are major tailwinds.
Its CEO, Adrian Thomas, notes healthy demand across Hammond’s core end markets at the start of 2026. He expects this demand to convert into profitable growth. He added that HPS will continue to support customers as electrification and digital infrastructure investments drive demand for resilient and reliable power solutions.
Oil bellwether
Suncor Energy is an oil bellwether. At $80.28 per share, investors enjoy a 33.7% year-to-date gain on top of the 2.99% dividend yield. A $40,000 investment inside a TFSA will compound to $62,534,10 tax-free in 15 years, including reinvestment of quarterly dividends. Assuming the yield remains constant, the balance transforms into $467.44 in passive income every quarter.
The $94.8 billion integrated energy company saw its net earnings in the first quarter (Q1) of 2026 climb 24% to $2.1 billion, up from Q1 2025. Notably, free funds flow jumped 53% year over year to $2.9 billion. According to its president and CEO, Rich Kruger, Suncor is a results-oriented, high-performance organization today. Shareholders can expect strong and sustainable returns moving forward.
Unused space is an asset
TFSA users at age 50 should view the underutilized contribution room as an asset, not a liability. A 10- to 15-year runway, supported by growth and income investing, can grow the TFSA balance to a massive amount. This space is waiting during the peak earning years.
