Average TFSA Balance by Age (30, 40, 50, 60): Have You Saved Enough?

Curious if your TFSA savings are on track? Let’s see how you compare to the national averages by age, income, and gender.

Key Takeaways

• Younger Canadians are starting to save early in their TFSAs.
• Women tend to have higher TFSA balances than men, despite earning less.
• TFSAs help Canadians at all income levels save for the future.

Average TFSA Savings by Age

For Canadians under 20, the average TFSA balance is $3,304, which is surprisingly high given that it only includes 18- and 19-year-olds. It’s impressive that young people in this age group, who likely have limited income from part-time jobs or allowances, have managed to save anything at all.

As you move into your early 20s (20-24), the average balance jumps to $6,558. By now, most people have some form of stable income and are starting to make more regular contributions. 

By the time you’re in your late 20s (ages 25 to 29), the average balance rises to $10,961. At this stage, people are becoming more financially stable, often settling into careers and potentially beginning to think about long-term goals like buying a home. 

Once you hit your 30s, your TFSA balance starts to accelerate. For those aged 30 to 34, the average balance is $13,822, and for those 35 to 39, it rises further to $15,594. This is a time when people are typically focusing on bigger financial goals like starting a family, buying property, or building up an emergency fund. More disposable income often means bigger contributions to long-term savings accounts like TFSAs.

Moving into your 40s, the growth in TFSA balances continues to pick up speed. The average balance for those aged 40 to 44 is $17,604, and for those aged 45 to 49, it jumps to $21,177. This is often a key period for Canadians to maximize their contributions as they enter their peak earning years, knowing that retirement is becoming more of a reality on the horizon.

In your 50s, the growth in your TFSA balance really takes off. Canadians aged 50 to 54 have an average balance of $26,479, and for those aged 55 to 59, the average jumps to $33,242. This is a critical time for Canadians as they get serious about preparing for retirement. 

As Canadians approach retirement, their TFSA balances continue to grow significantly. Those aged 60 to 64 have an average balance of $39,756, reflecting decades of compounding growth. By the time they reach ages 65 to 69, the average balance reaches $45,156. Many Canadians use their TFSAs to cover retirement expenses without worrying about the tax implications of withdrawals, making it a key part of their retirement strategy. This is something we spend a lot of time planning with our clients here at Blueprint.

Finally, once Canadians are in their 70s and beyond, TFSA balances reach their highest levels. For those aged 70 to 74, the average balance is $49,367, and for those aged 75 to 79, it climbs even further to $53,942. The highest average balances are seen in those 80 and over, where the average is $56,598, reflecting the long-term growth that comes with consistent contributions and the power of compounding over the years.

Key takeaways

I’m surprised at how low the average TFSA balances are, especially given the high contribution limits. It’s important to remember these are average balances, which can be skewed by a few very large accounts. Median balances, which better reflect what a “typical” person has saved, weren’t available but would likely be much lower than these average numbers provided.

The main lesson here is clear: no matter where you are on your financial journey, starting early and contributing consistently to your TFSA can make a significant impact over time thanks to tax-free growth. Every bit of savings counts! 

Think of your TFSA like a snowball rolling down a hill. It starts small, but with consistency and time, it builds into something much bigger

Average TFSA by Gender

Average TFSA Savings by Gender and Age:

Women tend to save more than men in their TFSAs at nearly every age, starting early. Among those under 20, women’s average balance is $3,881, compared to $2,921 for men. This is especially surprising given that both groups are likely earning limited income at this age. It suggests that women may be more inclined to start saving early and develop strong financial habits sooner.

As we move into the 20 to 24 age group, the trend continues: women save $7,250 on average, compared to $6,043 for men. The gender gap persists in the late 20s, where women’s balances reach $11,264, while men hold $10,700. However, by the time Canadians hit their 30s, the gap almost closes, with men slightly edging ahead in the 30 to 34 age group, holding $13,920 compared to women’s $13,716. This could be where the gender income gap begins to play a larger role in savings ability.

However, as Canadians move through their 40s and 50s, women begin to pull ahead once again. In the 45 to 49 age group, women hold an average of $21,680, compared to $20,640 for men. By the time they reach 50 to 54, women are leading with $27,231, while men have $25,638. This could reflect a more conservative approach to spending and saving, as well as a heightened focus on long-term financial security as retirement approaches.

In their 60s, the gap remains, with women aged 60 to 64 holding $40,241 compared to $39,182 for men. Even in their 70s and beyond, women’s TFSA balances remain higher: for those aged 80 and over, women average $57,530, while men hold $55,284. This could be due to a combination of factors, including women’s longer life expectancy and a more cautious withdrawal strategy in retirement.

What’s truly surprising is that despite the well-known income gap, where men earned an average of 36% more than women in 2022 (men: $66,000, women: $48,400), women still maintain higher average TFSA balances. This could suggest that women are prioritizing savings and making strategic decisions with their money. Factors like conservative spending habits, a focus on long-term security, and lower-risk investments may be driving these higher balances.

These trends demonstrate that how you save can often matter more than how much you earn. Women are showing that with smart financial habits, even those with lower incomes can build significant long-term wealth through vehicles like TFSAs.

Perhaps this isn’t that surprising, considering us men do seem to waste a lot of money on dumb stuff.

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So men, if you want to catch up to the women in your life and realize the full potential of your TFSA, I go into how to reach a million dollar TFSA in another video on this channel, so check that out!

Average TFSA Savings by Income Level 

Average TFSA Savings by Income Level (2022) 

Key Takeaways on TFSA Savings by Income:

When analyzing TFSA savings by income, even low earners are making good use of their accounts. Canadians earning between $1 and $4,999 have an average TFSA balance of $18,994, which is surprisingly high given their limited income. Those earning $5,000 to $9,999 hold $15,879, and for $10,000 to $19,999, the estimated average TFSA balance is $20,456. It’s impressive that even at the lowest income levels, Canadians are prioritizing their TFSAs.

In the middle-income range ($20,000 to $49,999), TFSA balances are steady, ranging from $28,809 to $29,567. Interestingly, this is comparable to those earning $50,000 to $74,999, where the estimated average TFSA balance is $29,679. 

As incomes rise, TFSA balances increase significantly. Canadians earning $75,000 to $99,999 have average TFSA balances of $32,125, while those in the $100,000 to $149,999 range reach $35,796. Top earners—those making over $150,000 and $250,000—see dramatic jumps, with average balances of $46,120 and $63,989. 

What’s surprising is how similar the balances are between those earning $25,000 and $74,999. Even though these income groups span a wide range, their average balances remain close, suggesting that many middle-income Canadians are making the most of their TFSAs, despite having less disposable income. This reveals how valuable TFSAs are for all income levels, not just high earners.

Pro Tip: Maximize your TFSA’s tax-free growth by reinvesting any dividends or interest earned directly back into the account.

How to Use This TFSA Data to Boost Your Finances

After digging through all this data, here are the ways I see that it can help:

1. Use Data to Motivate Your Savings
   • Compare your TFSA balance to averages by age, gender, and income. For instance, if you’re aged 30-34, the average TFSA balance is $13,822, which grows to $39,756 by 60-64. Use these benchmarks to evaluate where you stand and set realistic, achievable savings goals to keep you motivated.
2. Start Early to Maximize Compounding
   • The earlier you start contributing, the greater the impact of compound growth. Even a small TFSA balance in your 20s can grow substantially over time. Make contributing a habit, no matter how small—it’s consistency that will lead to significant growth by the time you reach retirement.
3. Plan for Retirement with Your TFSA
   • TFSAs aren’t just for short-term savings goals. Use them as part of your retirement strategy. For Canadians aged 60-64, the average balance is $39,756, providing a valuable tax-free income source in retirement. Start thinking long-term and aim to build your TFSA for future financial security.
4. Build Wealth, Regardless of Income
   • You don’t need a high income to benefit from a TFSA. Canadians earning between $25,000 and $29,999 maintain average balances of $29,567. Focus on small, consistent contributions—even lower earners can accumulate significant savings over time by sticking with a plan.
5. Leverage TFSAs to Overcome Income Gaps
   • Despite earning less, women often have higher TFSA balances than men, particularly near retirement. This demonstrates that consistent saving habits are more important than income when building long-term wealth. Focus on your habits, not just your earnings.
6. Make Your TFSA Central to Your Financial Plan
   • Whether you earn $25,000 or $250,000, the TFSA is a powerful tool for growing wealth. High earners can shelter more money from taxes, while middle-income Canadians can consistently build their savings. Prioritize your TFSA as a key component of your overall wealth-building strategy.

Focus on Progress, Not Comparison

It’s easy to get caught up in how your savings stack up against others, but the real success lies in your personal progress. Whether your balance is higher or lower than average, what truly counts is the consistent effort to build wealth. Every dollar saved moves you closer to your financial goals.

If you’re ready to take your TFSA and overall wealth-building strategy to the next level, check out our services on this website for more expert advice.