The $109,000 Tax-Free Savings Account (TFSA) milestone can feel like a finish line, but for most Canadians, it should really feel like a wake-up call.
That’s the maximum cumulative TFSA contribution room for someone who was at least 18 when the TFSA launched in 2009, has been eligible every year, and has never contributed. For 2026, the annual TFSA limit is $7,000, bringing the total cumulative limit to $109,000 for fully eligible Canadians.
That number can create two very different reactions. Some investors may look at it and think they are behind. Others may see it as unused opportunity. The flexibility is why the TFSA is so valuable. It can hold cash, but it can also hold stocks, exchange-traded funds, and other qualified investments. Growth inside the account is tax-free, and withdrawals do not increase taxable income.
So how do Canadians actually stack up against the $109,000 milestone?
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Median over average
CRA data for the 2023 contribution year shows the average TFSA fair market value across all age groups was $33,534. For Canadians aged 45 to 49, the average was $24,150. For ages 50 to 54, it was $30,190. For ages 55 to 59, it was $37,600.
That gap is important. The average TFSA holder is nowhere close to the maximum room. Of course that doesn’t mean the account has failed, but that many Canadians still have room to improve before retirement.
Statistics Canada also shows how widely used the TFSA has become. In 2023, about 7.5 million tax filers contributed to a TFSA, and half of TFSA contributors had income below $60,000. That tells investors this is more than just a tool for high earners, but one of the most accessible wealth-building accounts in Canada.
The real question now is what to do if your TFSA balance is below the milestone. First off, don’t chase risky stocks to catch up fast. A TFSA is too powerful to waste on speculation. The better move is to use it for high-quality businesses that can pay income, grow earnings, and compound over time.
BNS
That is where Bank of Nova Scotia (TSX:BNS) deserves a closer look. Scotiabank fits because it offers something TFSA investors often need: a combination of dividend income and long-term recovery potential. As one of Canada’s major banks, it has operations across Canadian banking, wealth management, capital markets, and international banking.
The company has also been repositioning its business as well. BNS stock has been focusing more heavily on North America, improving returns, and shifting away from weaker international operations. In the second quarter of 2026, BNS stock reported adjusted net income of $2.65 billion, up from $2.07 billion a year earlier. Adjusted diluted earnings per share (EPS) also rose to $2.02 from $1.52.
Canadian Banking was especially strong, with earnings rising 53% year over year to $935 million. Furthermore, the dividend is the main reason this stock fits a TFSA catch-up strategy. BNS stock declared a quarterly dividend of $1.14 per share, a 4% increase now yielding about 3.7% at writing. The bank also reported a Common Equity Tier 1 (CET1) ratio of 13.3%, giving it a solid capital buffer.
Looking ahead
The valuation is also reasonable for a large Canadian bank. BNS stock trades at about 16.7 times trailing earnings. That gives investors a simple setup: collect income, reinvest the dividend, and wait for earnings improvement to keep building.
There are risks as always. BNS stock still faces credit risk if Canadian consumers weaken, housing stress rises, or unemployment moves higher. Its international banking operations can also bring more uncertainty than some Canadian-focused peers. Higher provisions for credit losses would pressure earnings and investor confidence. Still, the stock offers a useful balance for TFSA investors who want income and recovery potential without moving too far out on the risk curve.
Bottom line
A large TFSA balance is built by contributing regularly, avoiding unnecessary withdrawals, and owning companies that can keep paying and growing over time. BNS stock is not perfect, but it offers a dividend, improving earnings, and a valuation that still looks accessible for long-term investors.
Canadians who are below the $109,000 milestone still have time to close the gap. The next step is making sure every dollar inside the TFSA is working hard enough.
