By Andrew Button at The Motley Fool Canada
Are you close to 50 years old and wondering how your Tax-Free Savings Account (TFSA) stacks up compared to others?
It’s only natural to be curious about such things. While comparing your account balances to your friends’ balances may not be the healthiest way to define “enough,” it certainly beats not thinking about your personal finances at all.
With that in mind, here’s what the average 50-year-old Canadian’s TFSA looks like in 2026.
Average balance
The average Canadian TFSA holder has a balance just slightly below $30,000 at the age of 50. This can be deduced from official StatCan data showing that the range for the 50-54 age bracket is $26,500 to $30,200. Age 50 is the youngest age in this bracket, and TFSA balances tend to increase every year until a person reaches their seventies. So, the average 50-year-old Canadian likely has a little less than $30,000 in their TFSA.
Types of stocks
Having looked at the average Canadian TFSA balance at age 50, we can now move on to the average account allocation. This includes things like asset classes and individual securities.
In general, Canadians tend to hold stocks, guaranteed investment certificates (GICs), bonds, and funds built on the three previous categories in their TFSAs. This is partially because direct real estate holdings and private companies aren’t allowed in TFSAs. There are some exceptions to these rules — real estate investment trusts (REITs) are fine, for example — but they hold as generalities. So, assuming that the average Canadian’s allocation is instructive, then you might want to hold stocks, bonds, GICs and funds in your TFSA.
As for specific securities, Canadian and U.S. exchange-traded funds (ETFs) tend to be popular. Some individual U.S. stocks, such as Apple Inc, are also widely held in Canadian investors’ portfolios. Probably the biggest single asset class among Canadians, though, is blue-chip TSX-listed dividend stocks. Canadians love their dividends, and TSX blue chips provide plenty of yield.
Toronto-Dominion Bank (TSX:TD) is a classic example of a popular blue-chip dividend stock held by many Canadian investors. It was at one point the most popular stock among Canadian retail investors. I was not able to find data for 2026, but going by TD’s weighting in TSX index funds, it’s probably still a top holding among Canadian TFSA investors.
Why is TD Bank so popular among Canadian investors?
First, the underlying company is familiar, well-known and trusted (well, reasonably trusted).
Second, the stock has historically had a high yield, usually 5% or more.
Finally, the company has been performing well over time, with consistent growth and a wide profit margin (about 30% in the trailing 12-month period).
Unfortunately, TD stock no longer has the high yield it once did. Thanks to a major rally over the last 15 months, the stock now only pays out about 3.3%. Perhaps now is a little late to buy TD stock, but it will always be at least one to keep in mind.
Should you copy the average or chart your own path?
Having explored how much and what Canadians have in their TFSAs, it’s time to ask the all-important question: Should you do the same?
Certainly, you could do much worse than owning a diversified portfolio of ETFs, U.S. stocks and Canadian dividend stocks. Canadian TFSA holders seem to know what they’re doing when it comes to security selection. However, their average account balance (again, about $30,000) is a little low if they are hoping to retire off of TFSA income. Perhaps you should aim to save more than the average Canadian TFSA holder does. That notwithstanding, owning typical TFSA securities seems fine.
The post What the Average Canadian TFSA Looks Like at Age 50 appeared first on The Motley Fool Canada.
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Fool contributor Andrew Button holds Toronto-Dominion Bank stock. The Motley Fool recommends Apple. The Motley Fool has a disclosure policy.
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