Average TFSA Balance for Canadians Hits $50k
Canadians are reaching pivotal moments in their careers and are still not utilizing one of the most effective wealth-building instruments available—the Tax-Free Savings Account (TFSA). Recent statistics reveal that the average TFSA balance for Canadians aged 50 to 54 has increased to approximately $30,200, according to data from Statistics Canada’s 2023 contributions.
Average TFSA Balance According to Age Group
Despite this figure, many individuals in this age group have sizeable unused contribution room. In fact, the average unused capacity stands at nearly $58,000. This allows for significant potential to make strategic asset reallocations.
- Ages 40 to 44: $17,604
- Ages 45 to 49: $21,177
- Ages 50 to 54: $30,200
- Ages 55 to 59: $33,242
The numbers clearly indicate a trend: As Canadians age, their TFSA balances tend to increase. Individuals aged 50 are now just 15 years away from the traditional retirement benchmark of 65. Considering the average life expectancy in Canada is approximately 82 years, investments made at this stage can yield returns for decades beyond retirement.
Taking Action for Tax-Free Growth
With such substantial unused TFSA room, the focus should shift from merely observing average balances to actively managing investments within these accounts. Quality growth stocks are prime candidates for consideration. One example is Celestica (TSX:CLS), a Canadian technology stock that recently recorded impressive financial results. The company’s revenue for the fourth quarter of 2025 reached $3.7 billion, representing a 44% year-over-year increase. For the entire year, revenue climbed to $12.4 billion, with adjusted earnings of $6.05 per share, reflecting a 56% rise.
Investment Opportunities in Celestica
Celestica’s strategic positioning within the growing AI infrastructure market makes it an attractive choice for TFSA investors. The company manufactures essential hardware used in data centers, including advanced networking switches and AI computing systems for major clients like Google. In addition, Celestica’s CEO Rob Mionis highlighted the unprecedented demand for their products due to ongoing investments by key data center customers.
The company plans to significantly expand its capital expenditures to around $1 billion in 2026 to meet this rising demand. Celestica anticipates substantial growth in its Connectivity and Cloud Solutions segment, with projections rising from $4.5 billion to $7 billion in 2027.
Key Takeaways for 50-Year-Old Investors
For Canadians approaching retirement age, the urgency to act is palpable, yet there remains ample opportunity for change. With nearly $58,000 in unused TFSA contribution room, individuals can cultivate significant tax-free wealth over the next several decades.
Every investment decision made within a TFSA can deliver greater returns than those made outside of it. Withdrawals don’t affect government benefits, and the tax-free nature of growth and income allows for more efficient wealth accumulation.
The real question for Canadian investors at 50 is not whether they should maximize their TFSA contributions, but whether they can afford not to. Exciting opportunities in the market, such as those offered by Celestica, could lead to meaningful wealth accumulation in the years to come.
