What the Average Canadian TFSA Looks Like at Age 55

By age 55, many Canadians shift their investing focus from chasing aggressive growth to protecting and steadily growing the wealth they’ve already built. A Tax-Free Savings Account (TFSA) can act as one of the most important tools at this stage, especially for generating tax-free passive income and long-term capital gains. According to Statistics Canada, Canadians aged 55 to 64 contributed a median of $6,500 to their TFSAs in 2023, matching the annual contribution limit for the year, highlighting how heavily investors in this age group continue to rely on these accounts for wealth building.

For many experienced investors, that means focusing on businesses with dependable cash flows, resilient operations, and reliable shareholder returns rather than speculative bets. That helps explain why energy and renewable infrastructure stocks remain their favourites. These sectors can offer a mix of dividend income, stability, and long-term upside when backed by strong operational execution.

In this article, I’ll take a closer look at two TSX stocks that could fit well in the TFSA of a long-term Canadian investor at age 55.

Parex Resources stock

The first stock that fits this approach is Parex Resources (TSX:PXT), especially for investors who still want growth but with a focus on strong cash flow. The Calgary-based oil and gas producer mainly focuses on conventional operations in Colombia and has continued to strengthen its position through strategic acquisitions and expansion.

After rallying by 110% over the last year, PXT stock currently trades at $26.98 per share with a market cap of $2.6 billion. A major reason behind this momentum has been Parex’s continued push to expand its production capabilities. Its recently completed Frontera E&P transaction added nearly 37,000 barrels of oil equivalent per day (boe/d) to its portfolio, giving the company more operational scale and flexibility.

Financially, the company has remained strong as it generated funds from operations (FFO) of US$114 million in the first quarter. Parex’s netback remained healthy at US$30 to $33 per barrel of oil equivalent, reflecting efficient operations even in a volatile commodity environment.

In the second half of 2026, Parex expects its production to reach between 82,000 and 91,000 boe/d, reflecting a big increase from current levels. The company also expects free funds flow to reach roughly US$215 million at the midpoint of its guidance.

Besides growth, its 5.7% dividend yield makes Parex stock even more attractive for TFSA investors.

Brookfield Renewable Partners stock

For investors looking to balance traditional energy exposure with cleaner long-term growth trends, Brookfield Renewable Partners (TSX:BEP.UN) could also deserve a spot in a TFSA portfolio. The company operates one of the world’s largest renewable energy platforms, with hydroelectric, wind, solar, and energy storage assets spread across multiple global markets.

After climbing 41% over the last 12 months, BEP.UN stock currently trades at $46.70 per share with a market cap of $14.3 billion.

In the March quarter, Brookfield Renewable’s FFO climbed 19% year-over-year to US$375 million. Its hydroelectric business performed especially well, which benefited from stronger pricing and improved generation levels across Canadian and Colombian operations.

Meanwhile, the company is continuing to strengthen its global footprint through acquisitions. One of its notable recent deals involves plans to acquire Boralex, a renewable energy platform with significant operating assets and a large development pipeline. This move could help Brookfield Renewable accelerate future growth in several key markets.

Moreover, Brookfield Renewable currently offers a dividend yield of 4.5%, making it appealing for TFSA investors seeking steady passive income alongside long-term capital appreciation.

The post What the Average Canadian TFSA Looks Like at Age 55 appeared first on The Motley Fool Canada.

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More reading

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• TFSA Investors: 1 Top Canadian Stock Worth Buying With $7,000

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Parex Resources. The Motley Fool has a disclosure policy.