Turning 60 changes how most people think about money as they move closer to retirement.
If you are at this stage of life, you have probably asked yourself how your Tax-Free Savings Account (TFSA) stacks up against those of other Canadians your age.
Here is what the numbers show and how a simple shift in strategy can help you accelerate your TFSA balance growth.
What the average TFSA balance looks like
According to the latest Canada Revenue Agency data, Canadians between the ages of 55 and 64 hold an average of around $39,200 in the TFSA, which is quite low compared to the lifetime contribution limit.
As of 2026, anyone who was at least 18 years old when the TFSA launched in 2009 has accumulated $109,000 in total contribution room. It means the typical Canadian approaching 60 has only used up about 36% of what they are allowed to save tax-free.
Basically, more than $70,000 of available room is sitting unused in 2026.
Several Canadians still treat the TFSA as a savings account rather than an investment account. It means Canadian residents hold instruments such as short-term GICs (guaranteed investment certificates) in the TFSA. However, low-yield instruments such as GICs are unlikely to outpace inflation over time.
Additionally, Canadians tend to prioritize RRSP (Registered Retirement Savings Plan) contributions during peak earnings years. RRSP contributions come with an upfront tax deduction that feels rewarding right away.
As retirement gets closer, though, the TFSA becomes one of the most valuable accounts you own. Money you pull from an RRSP counts as taxable income, which could push you into a higher tax bracket and trigger an OAS (Old Age Security) clawback.
However, money withdrawn from the TFSA is tax-free for life.
Own blue-chip TSX dividend stocks in the TFSA
If your TFSA balance is close to the national average, there is still time to fix it. With roughly $70,000 in unused room and probably five to ten years before you retire, a smart shift in strategy can make a real difference.
One strategy is to move out of low-yield cash and into quality dividend stocks such as Bank of Nova Scotia (TSX:BNS). Since July 2009, BNS stock has returned 530% to shareholders in dividend-adjusted gains.
Scotiabank reported an adjusted return on equity of 12.5% for 2025, up nearly 200 basis points from the year before. Management told shareholders at the bank’s April 2026 annual meeting that it now expects to hit its medium-term return on equity target of 14% a full year ahead of schedule, and the bank had already reached 13% by the first quarter of 2026.
Net income rose 10% in 2025, and the bank bought back 20 million shares over the past year, with more repurchases planned. Put together, those results helped drive a total shareholder return north of 35% in 2025.
I like Scotiabank as a TFSA holding because it checks the boxes that matter for long-term compounding. It pays a well-covered dividend, is actively buying back shares, and is seeing earnings improve across Canada, the United States, and its Latin American footprint.
Despite its steady returns, BNS stock offers you a forward dividend yield of 3.7% in July 2026. Every dividend you collect inside a TFSA can be reinvested without the tax bill that would normally chip away at it in a regular account.
If you are sitting on unused TFSA room as 60 approaches, the next several years matter more than you might think. Shifting even part of your balance from cash into reliable dividend payers like Scotiabank can turn an average TFSA into a retirement asset.
