Canadians: How Much Should Be in a 20-Year-Old’s TFSA to Retire?

If you’re in your 20s and you feel like you “should” have a big Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) already … relax. Most people your age are still figuring out rent, tuition, and how to eat something other than pasta. The CRA’s TFSA data puts the average TFSA fair market value for Canadians aged 20 to 24 at about $7,894, so a typical 20-year-old sits somewhere around that neighbourhood, not at a maxed-out account. (This figure comes from the CRA’s 2025 TFSA statistics, which use 2023 contribution year data. It’s the most current available.)

On the RRSP side, most 20-year-olds have little to nothing saved, mainly because very few even contribute yet. StatsCan data shows only about 5.1% of tax filers aged 0 to 24 reported an RRSP contribution in 2022, and the median contribution among that group was about $1,800.

So the big consideration in your 20s is not “balance bragging rights.” It’s building the habit, keeping the money flexible if you might need it, and investing in your TFSA first in many cases because withdrawals don’t create future tax headaches. Here are a few stocks to consider adding to your TFSA — in whatever amount you can spare.

EQB

EQB (TSX:EQB) is one of the clearest “growth bank” stories in Canada, and it’s doing it without trying to be one of the old-school Big Six banks. It runs Equitable Bank and EQ Bank, focusing on alternative mortgages, commercial lending, and digital banking. The bank had a big leadership transition over the past year: Long-time CEO Andrew Moor died unexpectedly in June after 18 years leading the company. Chadwick Westlake, the former CFO, took over as CEO in August. He’s moved quickly — cutting 8% of the workforce and refocusing the bank on operating efficiency and a return to a 15%+ return on equity target.

The significant growth move here is EQB’s agreement to acquire PC Financial from Loblaw for approximately $800 million. The deal would add the PC Mastercard portfolio (over 2 million active accounts), more than $5.8 billion in assets, and distribution through roughly 2,500 Loblaw stores, effectively plugging EQB into the PC Optimum loyalty ecosystem and its 17.5 million members. The deal has cleared the Competition Bureau but still requires OSFI and Finance Minister approval.

In its first quarter of fiscal 2026, EQB reported adjusted diluted EPS of $2.26 and adjusted net income of $85.2 million. Adjusted revenue came in at $306.8 million. The current valuation looks reasonable for a growing company, with a trailing P/E around 17.7.

The forward-looking question is whether the new leadership team can keep growing while managing credit risk and funding costs, and whether the PC Financial deal closes and integrates smoothly.

BDGI

Badger Infrastructure Solutions (TSX:BDGI) is basically a pick-and-shovel play on construction, utility work, and industrial maintenance across North America. It runs hydro-vac trucks that dig without destroying pipes and cables, which sounds unglamorous until you realize cities and utilities keep spending on repairs, expansions, and safety.

In 2025, revenue grew 12% to $831.7 million and adjusted EBITDA grew 13% to $198.2 million, with adjusted EPS of $2.04 — up 21% from 2024. The company also announced a record fleet build plan for 2026, targeting 270 to 310 new hydro-vac units and 7%–10% fleet growth, and raised its quarterly dividend by 4%. That combination of record revenue, improving margins, and forward investment signals management’s confidence in demand.

However, there’s a risk you should know about before investing: Badger faces potential tariff exposure of $18 million to $30 million in 2026 due to new U.S. tariffs on non-U.S. content in trucks. Given that Badger’s growth is heavily U.S.-driven, this is worth monitoring. At a current price around $65, the trailing P/E is 27, which means the market already expects the company to keep executing well. Any bumps could send the stock lower.

GIB

CGI (TSX: GIB.A) is the calm, consistent compounding machine that quietly makes a lot of Canadian investors look smart over time. CGI sells IT consulting, systems integration, and managed services to governments and big corporations, which often means multi-year contracts. Over the last year, CGI kept doing what it does best: making small-to-medium acquisitions that deepen its capability and geographic reach. That included deals like Online Business Systems in Canada and Comarch Polska in Poland. And this year, it announced a global go-to-market alliance with OpenAI in 2026 to accelerate enterprise AI adoption for clients.

CGI’s stock has dropped roughly 39% over the past year, making it one of the TSX’s more notable underperformers, even though the company has been delivering solid fundamental results. Investors buying today are getting a much lower price than those who bought in a year ago — which either makes it more attractive or reflects concerns about government IT spending cycles and margin pressure that the financials alone don’t fully capture.

In its first quarter of fiscal 2026, CGI reported revenue of $4.08 billion, up 7.7% year over year, with net earnings of $442 million and diluted EPS of $2.03, up 5.7%. Management also highlighted the company’s cash generation of $872 million. The current valuation looks more grounded than many tech-adjacent names, with a trailing P/E around 13.4 and a market cap around $21.6 billion.

Bottom line

At 20, the “average” TFSA and RRSP numbers are useful only as a reality check, not a report card. If you’ve got a TFSA at all, you’re already ahead of the game. Start small, keep your investing consistent, and pick businesses that can grow through different economic moods.

EQB offers higher-octane Canadian banking growth with a new CEO steering a transformational deal. BDGI offers infrastructure-linked demand but it looks sort of expensive today and faces a U.S. tariff risk. CGI offers steady compounding at a lower price than it’s traded for in years, with a caveat that “cheap for CGI” can still feel pricey.

No matter what you decide to buy, your future self will care way more about your consistency than the amount you have at your starting line — and at 20, the most powerful tool you have is time.

The post Canadians: How Much Should Be in a 20-Year-Old’s TFSA to Retire? appeared first on The Motley Fool Canada.

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More reading

• 2 Canadian Stocks That Get Better Every Time the Bank of Canada Cuts Rates
• The Bank of Canada Just Held Rates at 2.25%. These 3 Dividend Stocks Are Built for the Wait.
• Opinion: The Best Place to Put Your $7,000 TFSA Contribution This Year
• 3 Undervalued Canadian Stocks to Buy Immediately
• A Canadian Stock Poised for a Massive Comeback in 2026

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends CGI and EQB. The Motley Fool has a disclosure policy.