If you’re approaching 60 and wondering whether your Tax-Free Savings Account (TFSA) is on track, you’re not alone. There’s no single “right” TFSA balance, since income, homeownership, debt, family obligations, and retirement plans vary widely. Still, the latest data provides a useful benchmark — and it suggests many Canadians have significant room to improve.
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The average TFSA balance may surprise you
According to the latest Statistics Canada data made available this year, Canadians aged 55 to 59 had an average TFSA fair market value of $43,519 in 2024. Even more striking, the average unused contribution room was $57,618.
That means the typical Canadian in this age group had more unused TFSA room than money actually invested in the account.
Of course, an average is only a reference point. If your balance is below $43,519, it doesn’t necessarily mean you’re behind. And if you’re above it, that doesn’t automatically mean you’re ready for retirement. What matters more is whether your savings rate and investment strategy are aligned with your goals.
The bigger takeaway is that Canadians approaching 60 may still have substantial tax-free investing capacity. In 2024, the cumulative TFSA contribution limit was $95,000, and the limit has risen to $109,000 since then.
Put your TFSA to work
If you have unused room, maximizing contributions should generally be a priority before retirement, assuming you have the cash flow and no higher-priority debt.
The next question is how to invest those contributions.
With retirement approaching, capital preservation and income become increasingly important. But that doesn’t necessarily mean abandoning stocks. Depending on your risk tolerance and retirement timeline, a combination of guaranteed investment certificates (GICs), bonds, and equities could provide a more balanced approach.
For investors who prefer simplicity, the iShares Core Balanced ETF Portfolio (TSX:XBAL) offers a ready-made 60/40 portfolio of stocks and fixed income. It is automatically rebalanced and has a relatively modest 0.19% management expense ratio (MER). Its 10-year annualized return was about 7.7%.
For investors with a longer horizon and greater tolerance for volatility, an equity-heavy exchange traded fund (ETF) such as iShares S&P/TSX 60 Index ETF can provide broad exposure to established Canadian companies. XIU returned about 29% in 2025 and had a 10-year annualized return of 13%, with distributions invested.
Those numbers are a reminder of the power of equities — but also a warning not to extrapolate recent performance indefinitely.
Quality income stocks could add another layer
Investors comfortable selecting individual stocks could also consider established income-producing businesses. As an example, one name worth watching is Granite REIT (TSX:GRT.UN).
The REIT owns 145 industrial and logistics properties covering about 61.5 million square feet, with committed occupancy around 98%. Its portfolio benefits from exposure to major tenants, including Magna, while its industrial real estate focus provides potential for recurring rental income and long-term growth.
At $88.50 per unit at writing, the REIT offers a distribution yield near 4%. Analyst estimates also point to meaningful upside, with the recent consensus suggesting 12-month upside potential of about 20%.
The bottom line
If you’re nearing 60, don’t obsess over whether your TFSA matches the $43,519 average. Instead, focus on the bigger opportunity: using your remaining contribution room and choosing investments that balance growth, income, and risk. A diversified ETF may be enough, while carefully selected dividend stocks can potentially add income and long-term compounding. The key is to make every tax-free dollar work harder before retirement.
