Canadians who have hit the age of 45 are at a pivotal moment in their retirement savings. On one hand, there’s still plenty of time to build wealth, with typical retirement still two decades away. At the same time, retirement is starting to feel less distant and more like something that needs a clear plan. The average TFSA and RRSP at age 45 speaks to that.
Most estimates suggest the average TFSA balance at age 45 is approximately $20,000 to $25,000, while the estimated RRSP balance ranges from roughly $70,000 to $150,000.
The RRSP range is much wider because income, employer matching, pension coverage, and contribution history can create a huge difference by age 45.
The TFSA was introduced in 2009, meaning that someone who is now 45 has been eligible to contribute since the account became available. Since it was launched, the TFSA has offered $109,000 in total contribution room over the years.
In 2026, the TFSA limit is $7,000, and unused contribution room can roll over.
Despite that large cumulative number, the contribution room is very different from the account balance. The list of reasons for not contributing is just as long and varied.
Fortunately, there are options for investors to bolster their TFSA and RRSP balances at age 45 and even older. For example, contributing $500 each month for 20 years would add $120,000 before accounting for any growth.
And there’s no shortage of great investments to help those contributions compound over time.
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Three investments for a TFSA or RRSP at age 45
Royal Bank of Canada (TSX: RY) is the largest of Canada’s big bank stocks. The bank offers investors a combination of dividend income and long-term growth. Royal Bank operates across multiple segments, including personal banking, wealth management, insurance, and capital markets.
The bank offers a quarterly dividend that carries a yield of 2.4%. Royal has paid that dividend for well over a century without fail and provided annual upticks for over a decade. The most recent uptick was a 7% increase announced this year.
Canadian Pacific Kansas City (TSX: CP) offers investors a different type of opportunity that’s rooted in growth. CP’s railway network is unique in that it connects Canada, the United States, and Mexico, giving it exposure to long-term trade and transportation growth.
The goods hauled across that vast network include consumer goods, automotive parts, raw materials, fuels, and staples, to name just a few. To say that the railway offers diversification would be an understatement.
In short, the railway connects metro markets, ports, storehouses, and factories across all of North America.
As of the time of writing, CP offers a yield of 0.74%, which is modest, but growing. The most recent uptick was a generous 17.5% increase.
Finally, prospective investors seeking to grow their TFSA and RRSP at age 45 should consider the iShares Core S&P/TSX Capped Composite Index ETF (TSX: XIC). The ETF tracks the Canadian market and holds companies across multiple sectors of the economy.
That includes financials, energy, industrials, materials, and other sectors. This makes the fund an ideal foundation for any well-diversified portfolio.
Turning to income, as of the time of writing, XIC offers a yield of 2%.
The bottom line
Comparing the average TFSA and RRSP at age 45 can help to identify where a strategy needs to shift. But it’s still just a benchmark, and there’s still plenty of time to make use of that contribution room.
That’s where the right investments, like the trio mentioned above, can make a big difference.
In my opinion, one or all of the above should be core holdings in a long-term, well-diversified portfolio.
