Based on the latest Statistics Canada data released in 2026 for the 2024 contribution year, the average Tax-Free Savings Account (TFSA) balance per individual was $38,566. While this provides a useful national benchmark, the average TFSA balance varies considerably across Canada due to differences in age, income, wealth, and local cost of living. Understanding these factors can help Canadians better assess their own progress and identify opportunities to build more tax-free wealth.
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Age, income, and geography shape TFSA balances
Age is one of the biggest factors influencing TFSA balances. Older Canadians have generally had more time to accumulate savings and investment gains. For example, individuals aged 55 to 59 held an average TFSA balance of $43,519, while those aged 60 to 64 averaged $52,381. In contrast, younger Canadians are still building their savings, with those under 20 averaging $4,179 and those aged 20 to 24 averaging $8,652.
Regional differences also play a role. Canadians living in high-cost markets such as Vancouver and Toronto often devote a larger share of their income to housing and everyday expenses, leaving less money available for TFSA contributions. Meanwhile, individuals with higher incomes and greater disposable cash flow — regardless of where they live — typically accumulate larger TFSA balances because they can contribute more consistently over time.
A major opportunity many Canadians are missing
Perhaps the most striking takeaway from the Statistics Canada data is the amount of unused TFSA contribution room, averaging $52,735. Canadians aged 35 to 39 had an average of $66,934 in unused room, while those aged 55 to 59 still had $57,618 available. That represents a significant amount of tax-free compounding potential left untapped.
Canadians who consistently maximize their TFSA contributions are likely ahead of many of their peers. One of the simplest ways to achieve this is by paying yourself first. Automatically directing a fixed percentage of every paycheque — such as 10% — into a TFSA removes the temptation to spend first and save later. Even smaller, regular contributions can compound into substantial wealth over the long term.
Investing strategically can accelerate growth
Maximizing contributions is only part of the equation. Choosing appropriate investments can further increase a TFSA’s long-term value because all interest, dividends, and capital gains earned inside the account are tax-free.
Conservative investors may prefer guaranteed investment certificates (GICs), while those seeking diversified long-term growth can consider balanced exchange-traded funds (ETFs), such as iShares Core Balanced ETF Portfolio, which maintains a classic 60% stock and 40% bond allocation.
Investors with a higher tolerance for risk may choose individual companies with strong long-term growth prospects. One example is Brookfield (TSX:BN), the global alternative asset manager. For over 30 years, Brookfield has generated annualized compound returns of approximately 19% and continues to target long-term shareholder returns exceeding 15%. Its investment strategy focuses on powerful secular trends, including digitalization (e.g. artificial intelligence infrastructure), decarbonization (e.g., energy transition), and deglobalization (e.g., infrastructure to support critical data being processed and stored within national borders).
Brookfield also recently repurchased shares at an average price of about US$41. With the stock still trading near those levels, combined with analyst consensus price targets that imply a meaningful discount of about 20% and a dividend that has grown at a compound annual rate of 9.9% over the past 20 years, the company offers a compelling combination of growth and income potential for long-term TFSA investors.
Investor takeaway
While the average TFSA balance differs across Canada because of age, income, and regional cost-of-living differences, the data also highlight a widespread opportunity. Many Canadians still have substantial unused contribution room. By contributing consistently and investing thoughtfully, investors can take fuller advantage of the TFSA’s tax-free compounding benefits and build greater long-term wealth.
