How Much Should a 20-Year-Old Canadian Have in Their TFSA to Retire?

The TFSA is a great account for Canadians to save for retirement, and the sooner investors begin to use one, the better. For a 20-year-old Canadian’s TFSA, that balance might not be huge yet, but that doesn’t mean they are behind.

A 20-year-old Canadian TFSA account still has decades to grow.

With regular contributions and reinvested dividends, compounding eventually can do the heavy lifting.

For 2026, the TFSA contribution limit is $7,000. Directing those contributions to the right investments is what can help today’s 20-year-old Canadian’s TFSA become a six or seven-figure TFSA in a few decades.

Here are three investments that could help make that happen.

Fortis shows why consistency matters

Fortis (TSX: FTS) provides a steady foundation for a 20-year-old Canadian’s TFSA. The utility stock owns regulated electric and gas operations across Canada, the United States, and the Caribbean.

Those regulated businesses generate predictable earnings, allowing Fortis to invest consistently in growth while continuing to pay a quarterly dividend.

As of the time of writing, Fortis offers a 3.1% dividend yield. That’s not the most exciting yield on the market, but it’s well-covered and continues to grow.

In fact, Fortis has increased its dividend annually for 52 consecutive years. Fortis is targeting 4% to 6% annual dividend growth to continue through the end of the decade. This makes the stock an appealing buy-and-forget option for a 20-year-old Canadian’s TFSA.

Enbridge can accelerate income growth

Another option for younger investors is Enbridge (TSX: ENB), an energy infrastructure giant that transports a significant portion of North America’s crude oil and natural gas. Its critical pipeline network provides the company with a wide defensive moat and reliable revenue.

Perhaps best of all, it’s also not the only segment that Enbridge offers. The company also operates one of the largest natural gas utilities in North America, as well as a growing renewable energy business.

This gives Enbridge a unique mix of necessity, defensive appeal, and growth potential. The last part is income, and Enbridge provides that too.

As of the time of writing, Enbridge offers a quarterly dividend with a yield of 4.9%. Enbridge has also provided annual increases to that dividend for over 30 consecutive years.

For the TFSA of a 20-year-old Canadian, Enbridge provides a growing source of income that can be reinvested inside the TFSA without creating a Canadian tax bill.

At the current yield, an initial $3,000 investment in Enbridge would generate roughly $147 in annual dividends that could be reinvested into additional shares.

Scotiabank offers long-term growth potential

It would be difficult to compile a list of great investments for a 20-year-old Canadian’s TFSA without mentioning at least one of Canada’s big bank stocks. Bank of Nova Scotia (TSX: BNS) is the option to add to that portfolio.

Scotiabank operates a strong Canadian banking business while maintaining a presence across several international markets. That combination provides recurring domestic revenue and an additional source of long-term growth.

The result is long-term growth potential along with one of the highest yields of the big banks.

As of the time of writing, Scotiabank offers a 3.6% dividend yield. The bank also increased its quarterly dividend to $1.14 per share following its second-quarter 2026 results.

Perhaps best of all, like the other companies mentioned above, Scotiabank has provided annual increases to that dividend for over a decade. In fact, the bank has paid dividends without interruption for nearly two centuries.

This means that Scotiabank is a great addition to a 20-year-old Canadian’s TFSA.

How much should a 20-year-old Canadian have in their TFSA?

There’s no universal balance that a 20-year-old needs to have in their TFSA.

For someone who turned 18 in 2024 and remained a Canadian resident, that means as much as $21,000 in accumulated contribution room by 2026.

Ideally, the amount should be as much of their available contribution room that they can comfortably afford. This gives compounding the absolute maximum amount of time to be effective.

The trio of options mentioned above offer growing dividends, stable businesses, defensive appeal and long-term growth potential.

This makes them, in my opinion, great additions to any well-diversified, long-term TFSA portfolio.