Based on an in depth report from Blueprint Monetary, the common Tax-Free Financial savings Account (TFSA) stability for Canadians aged 55 to 59 is round $33,200.
The quantity is nicely under what monetary specialists advocate for this age group, as many savers strategy the ultimate stretch earlier than retirement. The TFSA stability for these aged 50–54 is round $26,400, whereas it rises to $39,750 within the 60–64 age group.
The comparatively modest balances stem from inconsistent contributions and low-interest financial savings merchandise. A number of Canadians use the TFSA as a “financial savings account” quite than an “funding account,” which has led to less-than-impressive returns. Mainly, Canadians have but to totally leverage the TFSA’s tax-free progress potential for retirement earnings.
At 55, a well-funded TFSA turns into more and more useful. Not like Registered Retirement Financial savings Plan (RRSP) withdrawals, TFSA distributions don’t set off taxes or have an effect on authorities profit eligibility for Canada Pension Plan, Previous Age Safety, or Assured Revenue Complement.
Notably, the TFSA stability for girls within the 55–59 age group is greater than that of males. This sample is seen throughout most age teams, at the same time as ladies earn 36% much less on common. The hole means that differing financial savings habits might outweigh earnings variations in long-term wealth constructing.
Canadians ought to prioritize maximizing TFSA contributions annually to learn from tax-free returns for all times. Right here’s how one can additionally use the TFSA to create a gradual stream of passive earnings.
Personal blue-chip TSX dividend shares within the TFSA
TFSA traders ought to think about proudly owning a portfolio of blue-chip dividend shares to start a recurring passive earnings stream in 2026. One such Canadian inventory is Brookfield Infrastructure Companions (TSX:BIP.UN), which gives you a dividend yield of 5.1%. Within the final 10 years, BIP inventory has returned near 300% to shareholders, after adjusting for dividend reinvestments.
Brookfield owns and operates a portfolio of cash-generating belongings throughout sectors similar to utilities, transportation, knowledge facilities, and midstream.
Brookfield Infrastructure Companions delivered robust monetary outcomes over the previous 5 years regardless of dealing with headwinds, and the corporate now believes it stands at an inflection level that would drive considerably greater progress charges forward.
The partnership generated 13% annual progress in absolute funds from operations and 10% progress in money movement per unit over the past 5 years, whereas decreasing its payout ratio from 78% to 67%.
These numbers outpaced Canadian midstream and utility friends, which averaged round 5% money movement progress throughout the identical interval, although they fell wanting BIP’s long-term common of 14% annual progress.
Rising rates of interest in recent times weighed on outcomes, with the federal funds price leaping 500 foundation factors and the 10-year Treasury climbing 400 foundation factors. Adjusting for these headwinds, BIP’s funds from operations per unit would have grown 12% yearly as an alternative of 10%.
Rates of interest are actually steady or declining, and BIP not too long ago issued a 5-year bond at 3.7%, in contrast with over 200 foundation factors greater simply two years in the past.
BIP deployed US$2.1 billion into new investments in 2025, together with US$700 million in natural progress initiatives and US$1.4 billion throughout 4 new acquisitions focusing on returns of 12% to fifteen%. It recycled US$2.8 billion by way of eight asset gross sales, producing a 20% inner price of return and a four-times a number of on capital.
Administration highlighted synthetic intelligence infrastructure as a significant progress alternative, with plans to allocate US$500 million yearly to AI-related initiatives.
The corporate is pursuing seven AI factories throughout 5 international locations, with complete capital deployment doubtlessly reaching US$200 billion over time.
Wanting forward, BIP expects to return to annual progress charges approaching 14%, enabling dividend will increase on the greater finish of its 5% to 9% goal vary with out elevating the payout ratio.
