There’s no mandated retirement age in Canada, though 60 could count because you can start collecting your Canada Pension Plan (CPP). Most Canadians, however, retire at 65 to receive the CPP and Old Age Security (OAS) together. Only the former allows an early start, but at a reduced amount.
Canadians approaching 60 may be feeling the pressure as retirement becomes a reality. One gauge of their readiness is the TFSA and tax buffers built up in previous years.
Source: Getty Images
Wealth-building potential
The Canada Revenue Agency (CRA) reported that the average TFSA balance for Canadians aged 50 to 59 is $35,000 to $43,000. This same data file shows that the TFSA average balance is $38,566. Naturally, these prospective retirees are right in line with the national average.
However, a significant gap exists between the actual utilization and the maximum contribution limit of $109,000. This leaves up to 68% of untapped tax-free compounding space. With its tax-free growth feature, the TFSA can close the gap and build substantial wealth over a 10- to 15-year runway. It would enable a seamless financial transition into the sunset years.
Pre-retirees nearing 60 can effectively close the utilization gap and grow their TFSA balances in two ways. A steady dividend grower like TC Energy (TSX: TRP) can serve as the portfolio’s anchor, while Enerflex (TSX: EFX), a high-performing growth stock, can act as a capital compounder.
Although the companies operate in the same sector, they serve different segments of the oil and gas industry. Thus far in 2026, both stocks have outperformed the broader market, and the long-term macroeconomic trends remain favourable.
Dividend grower
TC Energy boasts 26 consecutive years of dividend hikes. The most recent increase was 3.2% in February 2026, with dividend growth guidance of 3% to 5% in the ensuing years. At $96.20 per share, TRP is up nearly 30% year-to-date and pays a 3.68% dividend.
A $40,000 investment in a TFSA will grow to $69,293.80 in 15 years. Assuming the yield is constant, a 50-year-old user will earn $637.50 in tax-free income every quarter starting in 2032. The final balance remains intact.
The $99.4 billion natural gas and power company has a solid footprint in the Oil & Gas Midstream industry. Its president and CEO, François Poirier, said, “We entered 2026 with strong momentum. Constructive market conditions continue to translate into attractive, disciplined growth opportunities.”
Capital compounder
Enerflex operates in the Oil & Gas Equipment Services industry. The $4.1 billion company offers vertically integrated and comprehensive energy infrastructure solutions. Current investors enjoy a 60% year-to-date gain on top of the modest 0.5% dividend.
EFX currently trades at $33.76, with a total three-year return of +270%. A $20,000 position three years ago is worth $73,594 today. The healthy backlog of $1.3 billion in Engineered Systems (ES) as of March 31, 2026, provides strong visibility into future revenue. According to Paul Mahoney, Enerflex’s president and CEO, the ES business demonstrates strong commercial momentum.
Retirement cushion
The TFSA is purpose-built for the long term. Canadians approaching 60 can turn their unused contribution room into a tax-free retirement cushion. A pair of TSX stocks with stable business operations can ensure a seamless financial transition into the sunset years.
