Canadians: Here’s How Much You Need in Your TFSA to Retire

Retirement planning starts with consistent TFSA contributions and quality holdings.

Key Points
  • A TFSA could support retirement when income and gains compound tax-free.
  • Toronto-Dominion Bank (TSX:TD) reported 21% adjusted diluted EPS growth in the latest quarter.
  • Intact Financial (TSX:IFC) maintains a strong 91.3% combined ratio.

Many Canadians approach retirement with far less in their Tax-Free Savings Account (TFSA) than they might expect. According to Canada Revenue Agency data for the 2023 contribution year, Canadians aged 60 to 64 had an average TFSA balance of about $45,100. That rose to roughly $51,200 for those aged 65 to 69 and $56,100 for those aged 70 to 74. While every retirement plan is different, those figures highlight that building a larger TFSA takes years of consistent investing and the right long-term holdings.

The investments you hold inside your TFSA could make a huge difference over decades. For investors looking to grow their retirement savings, dividend-payers like Toronto-Dominion Bank (TSX: TD) and Intact Financial (TSX: IFC) could be high-quality Canadian financial stocks worth considering right now.

Piggy bank with word TFSA for tax-free savings accounts.

Source: Getty Images

A TFSA stock with several growth engines

TD is one of North America’s largest banks, offering Canadian personal and commercial banking, U.S. retail, wealth management and insurance, and wholesale banking operations. Its stock recently traded at $170.01 per share with a market cap of about $284 billion. TD shares have jumped 67% over the last year. At this market price, its dividend yield stands near 2.6%, paid quarterly.

In the second quarter of its fiscal year 2026 (ended in April), TD’s adjusted diluted earnings per share (EPS) rose 21% year over year (YoY). The bank mainly benefited from record Canadian personal and commercial banking earnings, all-time high wealth management and insurance earnings, and stronger wholesale banking performance.

TD is also investing in digital tools, artificial intelligence (AI), and client experience to improve its growth prospects. Its redesigned TD Easy Trade app and generative AI-powered virtual assistant in TD Insurance show how the bank is trying to keep improving service while supporting long-term efficiency.

Another TFSA-friendly stock with underwriting discipline

Intact Financial is Canada’s largest property and casualty insurer, with operations across Canada, the United States, the United Kingdom, Ireland, and Europe. After climbing 21% over the last three months, IFC stock now trades at $298.79 per share with a market value of about $53 billion. At the current price, its dividend yield was about 2%, paid quarterly.

In the first quarter, Intact reported an 8% YoY increase in net operating income per share, helped by robust investment income and sustained underwriting margins. Its combined ratio remained strong at 91.3%, while operating direct premiums written rose 4%. Intact also had a total capital margin of $4 billion and an adjusted debt-to-total capital ratio of 16.4%, giving it flexibility for acquisitions, buybacks, and growth initiatives.

What it means for retirement

A TFSA retirement strategy should not depend on one stock or one sector. But financial companies could play an important role because they often combine dividends, scale, and long operating histories. While TD offers banking breadth and a rising digital focus, Intact adds insurance exposure and underwriting strength.

For Canadians looking to find out how much they need in a TFSA to retire, the better answer may be to start with quality holdings, contribute consistently, and allow time to do the heavy lifting. Over decades, tax-free compounding can become more powerful than any single perfect target number.

Fool contributor Jitendra Parashar has positions in Toronto-Dominion Bank. The Motley Fool recommends Intact Financial. The Motley Fool has a disclosure policy.

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