A useful way to think about how much you need in your Tax-Free Savings Account (TFSA) for retirement is to separate the benchmark from the goal. Canada Revenue Agency (CRA) data tells us what Canadians in different age groups actually hold, and those figures provide valuable context for judging your own progress. In the 2023 contribution year, the average TFSA fair market value was $45,109 for Canadians aged 60 to 64. That figure climbed to $51,244 for those aged 65 to 69 and $56,106 for the 70 to 74 age group.
Interestingly, Canadians aged 80 and over had an average of $66,061. Those numbers show that building a meaningful TFSA takes time. More importantly, how you invest that money could make a big difference.
In this article, I’ll highlight two TSX dividend stocks that could help investors build retirement wealth while generating dependable dividend income along the way.
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BMO stock
If you want your TFSA to keep working well into retirement, Bank of Montreal (TSX: BMO) could be a dependable stock to own. This Toronto-headquartered lending giant serves millions of customers across personal and commercial banking, wealth management, and capital markets segments.
After rallying by 43% over the last year, BMO shares currently trade at $243.56 apiece, giving the bank a market cap of roughly $169.2 billion. It also offers a 2.9% annualized dividend yield.
BMO’s strong run over the last year has been backed by its improving underlying earnings trend and strong fundamentals. In the third quarter of its fiscal year 2026 (ended in July), the bank’s reported net income fell 25% year over year (YoY) to about $1.8 billion. The decline mainly reflected a charge tied to goodwill from the announced sale of its Transportation and Vendor Finance businesses. However, the bank’s underlying results were much stronger as its adjusted net income climbed 19% YoY to $2.9 billion.
Strength was spread across BMO’s major businesses. Its Canadian personal and commercial banking adjusted net income rose 15% YoY, while U.S. Banking adjusted profit grew 11%.
Last quarter, BMO repurchased 3.8 million shares and maintained a 13% common equity tier-one ratio. At the same time, it is continuing to invest in technology, artificial intelligence (AI), and profitable loan growth.
For investors building a retirement-ready TFSA, that mix of dividends, earnings growth, and financial strength could make BMO an attractive core holding.
Intact Financial stock
Another quality stock that could help diversify a retirement-focused TFSA is Intact Financial (TSX: IFC). As Canada’s largest property and casualty insurer, it operates across Canada, the United States, the United Kingdom, Ireland, and Europe.
At the time of writing, IFC stock traded at $268.79 per share with a 6% year-to-date drop and a market cap of $47.4 billion. The stock had a 2.2% annualized dividend yield at that market price.
Recent weakness in IFC stock could be attributed to catastrophe and large losses that weighed on Intact’s financials in recent quarters. In the second quarter, the insurer’s underwriting income dropped 61% YoY to $305 million.
Even so, other parts of Intact’s business remained resilient as its operating direct premiums written grew 4% YoY. Its operating net investment income also rose 1%.
More importantly, the insurer finished the quarter with a $3.8 billion total capital margin and a 16.2% adjusted debt-to-capital ratio.
That financial strength leaves Intact well positioned to pursue profitable growth opportunities in the near term, while it continues to expect constructive conditions across its markets. For TFSA investors thinking years ahead, Intact could offer an appealing combination of dividends, diversification, and long-term compounding potential.
