The average Tax-Free Savings Account (TFSA) balance at 45 may look smaller than many Canadians expect. The latest CRA data shows Canadians aged 45 to 49 had an average TFSA fair market value of $28,084. Those aged 40 to 44 averaged $24,061. So, a fair age-45 benchmark sits somewhere in the mid- to high-$20,000 range.
That number shouldn’t make anyone feel behind. Averages can mislead. Some Canadians use their TFSA as an emergency fund. Some withdraw money for homes, kids, debt, or job changes. Some hold too much cash. Others simply started late.
But the number is still useful. By 45, retirement is no longer far away. It’s close enough to plan for but still far enough away for compounding to work. That’s why an exchange-traded fund such as Vanguard FTSE Global All Cap ex Canada Index ETF (TSX: VXC) can make sense inside a TFSA.
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VXC
VXC isn’t a high-income exchange-traded fund (ETF). It isn’t designed to produce large monthly payouts. The ETF is built for long-term capital growth by giving Canadian investors broad exposure to global stocks outside Canada.
Many Canadian investors already own plenty of Canadian banks, utilities, energy stocks, telecoms, and real estate. Those can be great income holdings, but Canada represents only a small slice of the global stock market. VXC helps fill the gap.
The ETF holds more than 11,700 stocks across developed and emerging markets, excluding Canada. That includes exposure to major U.S. companies, international leaders, and emerging-market businesses.
In short, VXC gives TFSA investors access to the companies driving global growth, technology, cloud computing, artificial intelligence, semiconductors, consumer platforms, and international business expansion. Instead of trying to pick one global winner, investors get a wide basket.
Numbers don’t lie
The fee is also reasonable. VXC’s management expense ratio is 0.22%. That means more of the return stays with investors over time. Costs aren’t exciting, but they can make a major difference across 15, 20, or 25 years.
Even someone below average still has time. A $20,000 TFSA at 45, combined with steady annual contributions, can still become a meaningful retirement asset. The bigger issue is not whether the account is “on track” today. It’s whether the money is invested in assets that can grow. In fact, here’s what $20,000 could bring in from dividends and growth, considering how the ETF performed last year.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT | 1-YEAR RETURN | PROJECTED SHARE PRICE | PROJECTED POSITION VALUE |
|---|---|---|---|---|---|---|---|---|---|
| VXC | $83.88 | 238 | $1.03 | $245.14 | Quarterly | $19,963.44 | 33.07% | $111.62 | $26,565.56 |
Making it work
VXC keeps the strategy simple. Investors don’t need to guess which U.S. stock, Japanese stock, European stock, or emerging-market company will win over the next decade. They can buy one ETF and gain broad global exposure.
The risk is volatility. VXC is an equity ETF, so it can fall hard during market selloffs. It also has heavy exposure to the United States and technology, which can help returns during strong markets but hurt when growth stocks pull back. Currency swings can also affect performance. This is not a cash substitute.
That’s why VXC works best for investors with patience. A 45-year-old still has 20 years before 65 and possibly 40 years of retirement investing ahead. The TFSA doesn’t need to be emptied the day someone stops working. It can keep compounding through retirement.
Bottom line
For Canadians near the average TFSA balance at 45, the takeaway is simple: don’t panic, but don’t ignore it either. The average is a starting point, not a verdict.
A globally diversified ETF such as VXC can help turn that starting point into something more powerful. Keep contributing, keep reinvesting, and give the account time. That’s how a modest TFSA today can become a serious retirement asset later.
