Investors who turn 50 are hit with a real retirement checkpoint. Retirement is no longer a someday date off in the future, but something real and under two decades away. That can create more urgency around saving, along with a natural desire to see how a portfolio compares with the average Canadian TFSA balance.
The latest data from the Canada Revenue Agency spans the ages of 50 to 54, and for that group, the average TFSA balance is just over $35,000. Those investors also had a massive $62,000 in unused contribution room.
The TFSA launched in 2009, so that’s one reason why balances may seem smaller, especially when compared to the more mature RRSP. The larger unused contribution room number stems from the fact that unused contribution room in a TFSA rolls over each year.
For Canadians who were eligible to contribute to a TFSA when it launched in 2009 and still haven’t, that means a whopping $109,000 in contribution room is still up for grabs.
Whether an investor is starting their TFSA or looking to make the most of that contribution room, there’s still plenty of time.
And with the right investments, a TFSA can compound into an income-producing portfolio in 15 years.
Here are some of those investments that could help bolster the average Canadian TFSA balance.
Source: Getty Images
TD combines growth and dividend income
Canada’s big bank stocks are almost always great long-term options to buy. In this case, Toronto-Dominion Bank (TSX: TD) can provide TFSA investors with a mix of dividend income and long-term growth to power that portfolio.
TD is Canada’s second-largest bank, operating large networks in both Canada and in the U.S. This gives the bank multiple earnings sources, including personal banking, commercial banking, and wealth management.
That U.S. network has grown over the years and now extends down the East Coast from Maine to Florida.
TD’s growth in the U.S. allows the bank to consistently invest in growth and pay a quarterly dividend. The bank has paid that dividend for over 160 years and has provided annual increases for over a decade.
As of the time of writing, that dividend carries a yield of 2.6%, making TD a solid option for investors looking to increase the average Canadian TFSA balance.
Metro provides defensive compounding
Another great option for TFSA investors to consider is Metro (TSX: MRU). Metro is one of the largest grocery stores and pharmacy operators in Canada. Those businesses are primarily located in Quebec and Ontario across a variety of different banners.
Groceries and pharmacies provide essential products and services. That gives Metro steady demand, which can support revenue and earnings.
That stability also means Metro can reliably expand its store network, invest in growth initiatives, and pay its quarterly dividend.
That dividend currently offers a yield of 1.8%. That’s not the highest yield on the market, but it’s well-covered and growing. In fact, Metro has provided annual upticks to that dividend for 30 consecutive years.
The most recent uptick to that dividend was a 10.1% increase in fiscal 2026.
This gives Metro a unique balance of growth and income that’s wrapped in a defensive shell.
Own a diversified portfolio in one investment
Rounding out the trio of options for investors looking to increase the average Canadian TFSA balance is not one stock, but rather an ETF. Specifically, iShares Core Equity ETF Portfolio (TSX: XEQT).
The ETF is a fund of funds that holds a globally diversified portfolio of ETFs providing exposure to Canada, the U.S., developed international markets, and emerging markets.
The fund is monitored and rebalanced to maintain target allocations. That’s helped the fund see strong growth over the years, including a 21% increase over the trailing 12-month period.
While the fund does offer a distribution, the 1.6% yield isn’t the goal of investing in this ETF.
The average Canadian TFSA balance at 50
Reaching age 50 still provides investors with plenty of time to bolster their portfolios. Even a $300 per month contribution over 15 years can provide an additional $54,000 in contributions, and that’s before compounding kicks in.
That’s why the average Canadian TFSA balance at 50 should be seen as a benchmark. With the right investments, such as the trio mentioned above, a well-diversified TFSA portfolio can still have significant room to grow.
