The Average Canadian TFSA Balance at Age 60: Here’s What It Tells Investors

A $45,109 TFSA balance at 60 is common, but the bigger point is you still have time to grow it tax-free.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published July 8, 3:45 pm EDT

Key Points

Most Canadians near 60 aren’t close to maxing their TFSA, so unused room is still a real opportunity.
At 60, a TFSA can fund retirement spending tax-free, but it may still need growth to fight inflation.
CP offers long-term compounding from essential rail infrastructure, with a small but fast-growing dividend.

A $45,109 Tax-Free Savings Account (TFSA) balance is the number many Canadians around age 60 should get to know intimately.

That was the average fair market value for TFSA holders aged 60 to 64 in the 2023 contribution year, according to Canada Revenue Agency data. For Canadians aged 55 to 59, the average was lower at $37,600.

Those numbers can be comforting or stressful, depending on where your own account sits, but also tell investors something useful. The average Canadian approaching retirement is not sitting on a maxed-out TFSA. Far from it. Many people still have unused contribution room, years of investing ahead, and a chance to turn an ordinary balance into a much stronger source of tax-free retirement income.

A train passes Morant's curve in Banff National Park in the Canadian Rockies. — Source: Getty Images

Flexing that flexibility

The TFSA is powerful because it’s simple. You contribute after-tax dollars, investments can grow tax-free, and withdrawals are generally tax-free. The 2026 TFSA dollar limit is $7,000, and withdrawals are added back to contribution room on January 1 of the following year.

That flexibility becomes more valuable near age 60. A TFSA can help cover expenses before Canada Pension Plan (CPP) or Old Age Security (OAS) begins. It can provide tax-free income after retirement, act as a cushion for healthcare costs, home repairs, travel, or helping adult children without increasing taxable income.

Don’t get me wrong, cash has its place, as do guaranteed investment certificates (GIC). But if someone is 60 and could live another 25 or 30 years, their TFSA may still need growth. Retirement is not a finish line for investing, but a new stage where inflation, income needs, and market risk all have to be managed together. So if your TFSA balance is below the average, the answer is not to chase a risky stock and hope to catch up quickly. The better move is to own durable companies that can compound over time.

CP

Canadian Pacific Kansas City (TSX: CP) is one stock that fits that job. CP stock is not a high-yield retirement stock. The company operates the only single-line rail network linking Canada, the United States, and Mexico. Its network stretches about 20,000 route miles and connects customers to ports from Vancouver to Atlantic Canada, the Gulf Coast, and Lázaro Cárdenas in Mexico.

Railways move grain, energy products, autos, industrial goods, consumer products, and intermodal freight. They’re tied to trade, manufacturing, agriculture, and supply chains. That gives CP stock exposure to the real economy rather than one narrow consumer trend.

The combination of Canadian Pacific and Kansas City Southern created a rail system that can move freight across all three North American countries under one network. That gives CP stock a long-term advantage as companies rethink supply chains, near-shoring, and cross-border trade. But what about the immediate future?

Looking ahead

The latest results were not perfect, but showed resilience. In the first quarter of 2026, CP stock reported revenue of $3.7 billion, while volumes measured by revenue ton-miles rose 2%. Core adjusted diluted earnings per share (EPS) hit $1.04.

The dividend is smaller than what income investors may expect at 0.76%, but the growth is worth noting as CP stock raised its quarterly dividend by 17.5% to $0.268 per share in April 2026. Inside a TFSA, that dividend can be reinvested without annual tax drag. More importantly, the combination of dividend growth and capital growth can help a modest TFSA balance compound over time.

There are risks. A weaker economy can reduce freight volumes. Trade uncertainty can affect cross-border shipments. Fuel costs, labour issues, weather disruptions, and integration execution can all pressure results. Still, CP stock has something many TFSA investors need: a long runway.

Foolish takeaway

CP stock may not deliver the highest income today, but it offers exposure to essential North American infrastructure, a unique rail network, and dividend growth that can add up over time.

For someone around age 60, the average TFSA balance is not the final answer, but a starting point. A $45,109 account can still become a more meaningful retirement asset if it’s invested patiently and not treated like short-term spending money.