Sept. 7: BEST OF THE BLOGOSPHERE

September 7, 2026

Canadians “sitting on tens of thousands” in unused TFSA room: Liew

Have you been popping a few loonies and toonies into your Tax-Free Savings Account (TFSA)?

Chances are, writes Christopher Liew for The Motley Fool, you have not been topping yours up.

“Canadians are sitting on tens of thousands in unused TFSA room. This dismal take-up is driven by financial priorities and individual saving habits,” he writes.

While TFSAs are definitely getting used, he continues, the average Canadian has filled up only about a third of their available room.

“The average TFSA balance is $38,566, which is only 35.4 per cent of the $109,000 maximum lifetime contribution room,” he notes, citing figures from the Canada Revenue Agency for the 2024 tax year.

Albertans are the best savers, he reports, with average TFSA balances around $41,500. Ontario and British Columbia savers are “close to the national average,” while Quebeckers ($34,000 to $36,0000) and Atlantic Canadians ($31,000 to $33,000) are closer to the low end, he adds.

As well, Liew notes, older Canadians tend to have used their TFSA room up more so than younger Canucks.

“The average TFSA for the 20–29 age bracket is between $9,000 and $14,000. However, the potential maximum for a 20- and 29-year-old is $21,000 and $78,000, respectively,” he points out. Those aged 30 to 49 have an average of $18,000 to $28,000, while those 50 to 59 have balances in the $35,000 to $43,000 range, he adds.

“Further acceleration happens at ages 60–69 ($52,381–$58,000) and ages 70–79 ($64,972–$71,000). For account holders aged 80 and over, the average is $76,305,” he writes.

Liew concludes the article by recommending we all spend a little time adding to our TFSA balances.

“The TFSA is a powerful wealth-building tool. If finances allow, maxing out your specific lifetime limit will produce the best results. It is not the place to store cash, but it was intended to motivate Canadians to save and invest for the future. You miss out on a golden opportunity by failing to capitalize on the tax-free growth feature,” he notes.

“Your TFSA is not just a tax shelter; it is a real money-making engine. The increase in balances among older users may be attributable not only to contributions but also to investment growth. All interest, capital gains, and dividend income earned inside the account is tax-free,” writes Liew.

Over time, that tax-free compounding can really boost your balance, he continues.

“Canadians, no matter which region they live in, can harness the power of tax-free compounding with a TFSA. While maximizing the available contribution room is always within a user’s control, an investing mindset, not saving, will prompt the action,” he concludes.

Compounding over a long term is a key feature of the Saskatchewan Pension Plan, a voluntary defined contribution plan that’s open to all Canadians with available registered retirement savings plan (RRSP) room.

Like an RRSP or a TFSA, growth of your savings within SPP is not taxed – when savings are turned into income, however, taxes do apply.

SPP invests contributions in low-cost, professionally managed pooled funds with a strong track record of solid returns. At retirement, your options for your SPP account include the security of a lifetime monthly annuity payment or the flexibility of the Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

TFSA, The Motley Fool

---

---