Here’s the Average TFSA and RRSP for a 40-Year-Old in Canada

Here are two Canadian stocks that could help you grow your TFSA and RRSP savings.

Key Points
  • Checking where your TFSA and RRSP stand today can help you make smarter long-term investing decisions.
  • Power Corporation of Canada (TSX:POW) combines solid earnings growth, a growing dividend, and long-term expansion plans that could reward patient investors.
  • Intact Financial (TSX:IFC) continues to deliver strong profits and financial strength, making it a compelling stock for long-term TFSA and RRSP investors.

If someone asked whether your retirement savings are on track, would you know the answer without opening your banking app? Most Canadians probably would not. That is why national averages can be surprisingly helpful. Statistics Canada found that Canadians aged 35 to 44 who held a Tax-Free Savings Account (TFSA) had an average balance of $32,300 in 2023. The average for Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Locked-in Retirement Accounts (LIRAs), and similar accounts was $88,600.

Whether you are ahead of those numbers or still working toward them, your next investment decisions matter even more. That’s because retirement savings are built over decades, not through a single contribution or market rally. Consistently investing in high-quality businesses and allowing them to compound can have a much greater impact than trying to time the market.

Here are two Canadian stocks that could help you continue growing your TFSA and RRSP over the long term.

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Source: Getty Images

Power Corporation stock

For investors trying to build retirement savings, Power Corporation of Canada (TSX: POW) could be a practical investment to consider. This holding company has major interests in insurance, retirement, wealth management, and alternative asset businesses.

Its shares recently traded at $91.78 per share with a market cap of about $53 billion and an annualized dividend yield of 2.9%. Interestingly, POW stock has risen 26% so far in 2026, outperforming the broader market by a wide margin.

That recent strength in the stock has been supported by better results across Power Corporation’s several core holdings. In the first quarter, the holding firm posted net earnings of $820 million, up from $689 million a year ago. Its net earnings also rose 20% year-over-year (YoY) to $1.29 per share from $1.07 per share.

Its subsidiaries, Great-West Lifeco and IGM Financial, were key contributors. Great-West benefited from growth in retirement and wealth businesses, while IGM saw gains across wealth and asset management.

Notably, Power Corporation is also building exposure to artificial intelligence (AI) through a joint US$150 million investment in the Sagard AI Fund alongside Great-West and IGM.

For someone working toward a stronger TFSA or RRSP balance, Power Corporation could offer reliable income, diversification, and several long-term growth drivers.

Intact Financial stock

Another stock that could help investors grow long-term savings is Intact Financial (TSX: IFC), especially for those looking for stable business performance.

Headquartered in Toronto, this company is the largest property and casualty insurer in Canada, with operations across North America, the United Kingdom, and Europe.

After climbing 10% over the last six months, its shares currently trade at $294.25 each with a market capitalization of $51.9 billion. At this market price, it has an annualized dividend yield of 2%.

Intact’s net operating income climbed 8% YoY in the first quarter to $4.33 per share, while its underwriting income increased 4% to $504 million. The company’s combined ratio remained solid at 91.3%, showing that it continued to earn strong underwriting profits.

Although Intact estimated that second-quarter catastrophe and large losses from severe weather and commercial fires were $247 million above expectations, its scale, pricing capabilities, underwriting discipline, and balance sheet continue to support its long-term outlook.

Overall, for a 40-year-old building wealth in a TFSA and RRSP, Intact stock provides a balanced mix of growth potential, stability, and dividend income.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Intact Financial. The Motley Fool has a disclosure policy.

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