What the Typical TFSA Balance Looks Like for Canadians at Age 60

As Canadians approach retirement, their Tax-Free Savings Account (TFSA) often becomes an important part of their financial picture — but the average balance at age 60 may surprise you. While many people recognize the tax-free growth advantages of a TFSA, actual balances vary widely based on income, investing habits, contribution history and market performance.

By age 60, the average TFSA balance for Canadians tends to sit in the low five figures, not six. This reflects a couple of common patterns: many savers did not contribute the maximum each year when the TFSA first opened, and some used their TFSAs for shorter-term savings goals rather than long-term investing. Since the TFSA contribution room accumulates over time (starting in 2009), someone who has steadily invested since early adulthood and consistently maxed out their contributions will generally have a higher balance than someone who only began contributing later in life.

It’s also important to understand that the “average” is influenced by a relatively small group of high-balance accounts, which pulls the mean upward. A more representative statistic — the median TFSA balance — is considerably lower, indicating many individuals have modest holdings. This pattern highlights how different saving behaviours and financial circumstances shape outcomes over decades.

Those with higher TFSA balances at age 60 typically share certain traits:

• Early and regular contributions, especially when they take full advantage of annual contribution room.

• Holding growth-oriented investments, such as diversified equity ETFs or dividend-paying stocks, which have time to compound tax-free.

• Using the TFSA for long-term wealth building rather than short-term goals alone.

Also Read: Long term investing in Canada

Conversely, those with smaller balances often used their TFSA for emergency savings or withdrew funds frequently, which can interrupt compounding. Life events such as career breaks, caregiving responsibilities or inconsistent contribution patterns also play a role.

Also Read: Safe investments for new investors

While the average TFSA balance at age 60 may seem modest, it’s not a fixed target — it reflects a broad spectrum of financial behaviours. The key takeaway for investors approaching retirement is this: consistent saving, early investing and maximizing contribution room over time can dramatically improve your TFSA’s impact on your retirement income. Starting early and staying disciplined pays off, thanks to the power of tax-free compounding.