The Average Canadian TFSA Balance at Age 60: Here’s What It Tells Investors

A $45,109 Tax-Free Savings Account (TFSA) balance is the number many Canadians around age 60 should get to know intimately.

That was the average fair market value for TFSA holders aged 60 to 64 in the 2023 contribution year, according to Canada Revenue Agency data. For Canadians aged 55 to 59, the average was lower at $37,600.

Those numbers can be comforting or stressful, depending on where your own account sits, but also tell investors something useful. The average Canadian approaching retirement is not sitting on a maxed-out TFSA. Far from it. Many people still have unused contribution room, years of investing ahead, and a chance to turn an ordinary balance into a much stronger source of tax-free retirement income.

Flexing that flexibility

The TFSA is powerful because it’s simple. You contribute after-tax dollars, investments can grow tax-free, and withdrawals are generally tax-free. The 2026 TFSA dollar limit is $7,000, and withdrawals are added back to contribution room on January 1 of the following year.

That flexibility becomes more valuable near age 60. A TFSA can help cover expenses before Canada Pension Plan (CPP) or Old Age Security (OAS) begins. It can provide tax-free income after retirement, act as a cushion for healthcare costs, home repairs, travel, or helping adult children without increasing taxable income.

Don’t get me wrong, cash has its place, as do guaranteed investment certificates (GIC). But if someone is 60 and could live another 25 or 30 years, their TFSA may still need growth. Retirement is not a finish line for investing, but a new stage where inflation, income needs, and market risk all have to be managed together. So if your TFSA balance is below the average, the answer is not to chase a risky stock and hope to catch up quickly. The better move is to own durable companies that can compound over time.

CP

Canadian Pacific Kansas City (TSX:CP) is one stock that fits that job. CP stock is not a high-yield retirement stock. The company operates the only single-line rail network linking Canada, the United States, and Mexico. Its network stretches about 20,000 route miles and connects customers to ports from Vancouver to Atlantic Canada, the Gulf Coast, and Lázaro Cárdenas in Mexico.

Railways move grain, energy products, autos, industrial goods, consumer products, and intermodal freight. They’re tied to trade, manufacturing, agriculture, and supply chains. That gives CP stock exposure to the real economy rather than one narrow consumer trend.

The combination of Canadian Pacific and Kansas City Southern created a rail system that can move freight across all three North American countries under one network. That gives CP stock a long-term advantage as companies rethink supply chains, near-shoring, and cross-border trade. But what about the immediate future?

Looking ahead

The latest results were not perfect, but showed resilience. In the first quarter of 2026, CP stock reported revenue of $3.7 billion, while volumes measured by revenue ton-miles rose 2%. Core adjusted diluted earnings per share (EPS) hit $1.04.

The dividend is smaller than what income investors may expect at 0.76%, but the growth is worth noting as CP stock raised its quarterly dividend by 17.5% to $0.268 per share in April 2026. Inside a TFSA, that dividend can be reinvested without annual tax drag. More importantly, the combination of dividend growth and capital growth can help a modest TFSA balance compound over time.

There are risks. A weaker economy can reduce freight volumes. Trade uncertainty can affect cross-border shipments. Fuel costs, labour issues, weather disruptions, and integration execution can all pressure results. Still, CP stock has something many TFSA investors need: a long runway.

Foolish takeaway

CP stock may not deliver the highest income today, but it offers exposure to essential North American infrastructure, a unique rail network, and dividend growth that can add up over time.

For someone around age 60, the average TFSA balance is not the final answer, but a starting point. A $45,109 account can still become a more meaningful retirement asset if it’s invested patiently and not treated like short-term spending money.

The post The Average Canadian TFSA Balance at Age 60: Here’s What It Tells Investors appeared first on The Motley Fool Canada.

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More reading

• 2 TSX Stocks I’d Buy Right Now (and 1 I’d Think About Letting Go)
• 3 Blue-Chip Dividend Stocks for Canadian Investors
• What TFSA Millionaires Understand That Most Canadian Investors Don’t

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Pacific Kansas City. The Motley Fool has a disclosure policy.