Here’s the Average TFSA Balance at Age 40 in Canada

Turning 40 is the moment when a Tax-Free Savings Account (TFSA) stops feeling like a nice-to-have thing and starts feeling like a must-build. This is when most Canadians begin thinking seriously about future freedom. Your income is usually higher, your financial habits are clearer, and the years ahead still give your investments tons of time to compound. Every dollar you put into a TFSA now grows tax-free for the rest of your life. That means the sooner you bulk it up, the sooner you create a cushion that supports your 50s, 60s, and beyond. At 40, your TFSA becomes less about saving and more about building a real engine for long-term independence.

What’s average?

The average TFSA balance for 40-year-old Canadians tends to fall well below what most people expect. That gap is one of the biggest reasons advisors stress catching up in your late 30s and early 40s. Surveys from major banks and government data show that Canadians in their late 30s to early 40s often have TFSA balances in the $20,000 to $35,000 range, even though contribution room by age 40 is far higher.

Many people spend these years focused on mortgages, kids, daycare costs, and career changes, so the TFSA becomes more of an afterthought than a priority. The problem is that these are also the years when investing starts to matter most, because compounding needs time. Once you hit 40, time becomes your most valuable asset.

The good news is that age 40 is still early enough to turn a TFSA into a serious long-term wealth engine. With contribution room increasing every year and more financial stability than in your twenties, this is the perfect stage of life to shift from “saving when I can” to “saving what I can.” Even modest monthly contributions can grow dramatically over the next 20 to 30 years, especially when sheltered from taxes. For many Canadians, understanding the typical TFSA balances at 40 is the wake-up call that sparks meaningful, consistent investing.

Consider BN

Brookfield (TSX:BN) is an ideal investment for 40-year-old Canadians looking to build up their TFSA. It combines long-term growth potential with diversified exposure to some of the most durable asset classes in the world. At 40, the goal is to own businesses that can compound for decades, and Brookfield is built for exactly that. Its global reach, disciplined acquisition strategy, and massive asset management arm give it multiple engines of growth that don’t depend on any single sector or economic cycle. When BN grows its assets under management, earnings rise. When it improves or sells assets at a profit, value flows back to shareholders.

BN is the parent company of the Brookfield empire. It oversees operations across real estate, renewable power, infrastructure, private equity, and credit. It earns money by managing assets for global institutional clients and by investing its own capital alongside them. That dual structure gives BN both steady fee-related earnings and upside from long-term asset appreciation. The company has a decades-long reputation for buying undervalued assets, improving them, and unlocking value while maintaining a disciplined, contrarian mindset.

Recent earnings have highlighted just how resilient Brookfield continues to be. Fee-related earnings increased as institutional investors continued to allocate capital toward infrastructure and private credit. Distributable earnings also showed strength as the company realized gains on asset sales and continued growing its asset management business. Even during choppier markets, BN’s fundraising momentum remained solid. Furthermore, its balance sheet stayed strong thanks to diversified cash flow streams.

Bottom line

The best part? BN gives everyday investors access to infrastructure, renewables, private equity, and real estate. These are areas that typically require institutional-level capital to enter. And right now, you can add to your TFSA through BN’s dividend yield of 0.52%. Here’s what that $35,000 then could turn into.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTBN$64.67541$0.34$183.94Quarterly$34,997.47

Holding a stock like BN inside a TFSA allows the compounding to happen tax-free, which is incredibly powerful over a 20- to 30-year horizon. For Canadians at 40 who want a long-lasting, diversified compounder in their TFSA, Brookfield fits almost perfectly.

The post Here’s the Average TFSA Balance at Age 40 in Canada appeared first on The Motley Fool Canada.

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More reading

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• 3 No-Brainer Data Centre Stocks to Buy With $500 Right Now

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