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.

More on Bank Stocks

Group of people in a line at an ATM waiting to make a cash withdrawal
Stocks for Beginners

Canadian Bank Stocks in Late 2026: Which Ones I’d Buy and Which I’d Skip

Canadian bank stocks offer different buying cases in late 2026. Compare Scotiabank, TD and Royal Bank on income, earnings and…

Read more »

customer uses bank ATM
Dividend Stocks

TFSA Withdrawal Rules Every Canadian Investor Should Know

Beware that re‑contributing withdrawn funds in the same calendar year can lead to a penalty from potential excess contribution.

Read more »

data analyze research
Stocks for Beginners

Maxing Out Your TFSA Isn’t the Final Step: Here’s What Is

A full TFSA still needs a plan: protect near-term spending, diversify long-term holdings, and understand when withdrawals restore room.

Read more »

senior couple looks at investing statements
Bank Stocks

BMO Says Canadians Need $1.7 Million to Retire: Your Number Could Be Very Different

BMO says Canadians need $1.7 million to retire, but your number may differ. See how CPP and OAS cut the…

Read more »

Concept of rent, search, purchase real estate, REIT
Stocks for Beginners

On a Variable Mortgage? Markets Are Now Betting on Hikes, Not Cuts

A rate hike remains possible, even after weak jobs data. Here's the household cost and the separate CIBC investment decision.

Read more »

woman checks off all the boxes
Stocks for Beginners

Using Your TFSA as a Retirement Account: Pros and Cons

The TFSA is an excellent tool to help you save and invest for your retirement nest egg, but there are…

Read more »

Paper Canadian currency of various denominations
Stocks for Beginners

Your Broker Withholds 15% on U.S. Dividends: Here’s The Tax Credit That Gets It Back

U.S. dividend withholding depends on your account, while BMO shows how a Canadian stock can offer U.S. exposure.

Read more »

Hand Protecting Senior Couple
Stocks for Beginners

How Much Do You Actually Need to Retire in Canada?

The same retirement lifestyle can require very different savings balances once pensions and withdrawal taxes enter the calculation.

Read more »